Why dividends?

Inflation protection

What is inflation? Inflation is essentially the rate at which the cost of living increases. What you could buy ten years ago for $100 now costs $125. Inflation decreases value Historically, inflation rates in Canada have averaged between 2 – […]

Superior returns

Can a DIY investor achieve superior returns than the index? The simple answer is a confident YES when a strategy of dividend investing is employed.  Here is the evidence. Dividends drive stock market returns Dividends are a major component of […]

Tax efficient income

Are dividends tax efficient? Dividends can be extremely tax efficient because of something called the Canadian Dividend Tax Credit.  For someone in the highest tax bracket, $1000 of regular income would be taxed at 50%. Interest (bonds, GICs) is also […]