Why Dividends?

Dividends are the building blocks of a solid financial plan.

Top 10 reasons a dividend-based strategy is ideal for DIY investors:

  1. Superior returns
  2. Simplicity
  3. Low fees
  4. Lower risk
  5. Lower volatility
  6. Tax-efficiency
  7. Inflation protection
  8. Steady income
  9. Diversification
  10. Flexibility

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 […]