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  • The Keystone Quandary [View article]
    Bad call by the State Department today: a crass political decision that will likely hasten Canada's move to exploring other export markets.
    Nov 11 08:25 PM | 6 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi Thomas. I appreciate your comment about taking the time to invest. One reason that dividend growth investing appeals to me is it teaches the disciplines of thinking for the long term, buying dips and analyzing value. No method of investing is foolproof, of course, but the disciplines dividend growth investing teaches makes it more likely you will succeed.
    Nov 3 08:15 PM | 6 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Hi extreme banker. Your criticism is actually very valid. I started out with a strict DCA strategy but as I have matured over the years, I now have more of a "buy the dip" mentality. And in 2009, a "buy the really scary metldown" mentality.

    My main point is that the "buy low, sell high" strategy is a big loser for almost everyone that tries it. I don't try to buy at the lows or sell at the tops. My strategy is, obviously, to acquire attractive dividend growth stocks. I buy when I perceive the particular stock to be at an attractive price and don't worry about whether it is going higher or lower in the short term.
    Apr 18 11:52 PM | 4 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Hi Richjoy,

    There are potential advantages for both concentrated portfolios and more diversified portfolios. I made my case for concentrated but there are many good arguments for better diversification. What really matters is having a plan that you believe in (and allows you to sleep at night).

    There is definitely truth to what you said regarding price performance during the great recession. Low beta stocks, by definition, won't go down as much as the market -- but they will go down. To pick two random examples, McDonalds held up very well with a 20% loss, while Johnson & Johnson took a 33% loss.

    Taking losses in the 20%-40% range stings and it is cold comfort that the market is down 50%-60%. Investors need to have realistic expectations about how their investments while perform. The simple point that I was trying to make was that in a market decline, dividend growth stocks go down, too.
    Apr 18 10:12 PM | 4 Likes Like |Link to Comment
  • How To Play Peak Cheap Oil: Looking For Yield And Growth In The Canadian Oil Sands [View article]
    Canada and the United States have signed a tax treaty where each country withholds a 15% tax rate on dividend earned in the other country. On both sides of the border this can be claimed as a foreign tax credit which will reduce your tax bill by an equivalent amount.

    Dividends received in a retirement account (RRSP in Canada, IRA in the U.S.) are exempt from the 15% withholding tax.
    Feb 21 11:23 PM | 4 Likes Like |Link to Comment
  • How To Invest In Coca-Cola For More International Exposure And Bigger Dividends [View article]
    I tend to agree with the other commentators here that KO is generally better than the bottlers, albeit a little over-priced at the moment.

    One exception, I believe, would be the Latin American bottler KOF. Soda is no longer a growth industry for the developed world and KOF has exposure to one of the few growing markets. They are expected to grow earnings by 20% over the next two years, then by around 12% the next three years thereafter. I can forgive the low dividend yield when they have a dividend growth rate of over 40%.
    Apr 23 07:36 PM | 3 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    To some extent, we are arguing about differences in degree and semantics.

    My point was that by owning dividend growth stocks you are taking on market risk, which is obviously true. My "absolutely false" statement was too strong, as absolutes usually are, and as you have explained quite well. So, yes, I concede the point :)
    Apr 18 11:49 PM | 3 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    I found your first comment interesting. I always found it relatively easy holding stocks in a declining market but holding cash in a rising market drove me nuts.

    When I started investing, I strictly DCA'ed into positions completely irrelevant of market conditions. Now, while I still tend to make several smaller purchases, I also value holding some cash at all times. It is simply a fact that a new bear market will come, sometime, and I would like to have some cash ready to take advantage.
    Apr 18 10:16 PM | 3 Likes Like |Link to Comment
  • Dividend Plays On Emerging-Market Infrastructure [View article]
    I am glad you liked the article. I am also long BIP and have been pleased with their performance.
    Nov 5 08:48 AM | 3 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi David Fish,

    You are perfectly correct when you point out that the Canadian Aristocrat isn't equivalent to the U.S. Champions. I included that chart for interest but perhaps I should not have because it distracts from the main point of the article.

    My simple point was just that you can't predict future dividend growth rates from historical data.
    Nov 3 09:03 AM | 3 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi Trainer51,

    For the first chart I picked the companies with the longest streaks of dividend increases as well as the average of every Dividend Champion.

    KO, MCD and JNJ all have declining dividend increases like the rest of the group; however, PG's dividend growth rate has held up well.
    Nov 3 08:57 AM | 3 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Hi Will63. Yes, absolutely.

    Automatically DRIPing makes sense when you are new, as it is hard to go wrong with blind dollar-cost averaging. It also may make sense for a smaller portfolio that needs to minimize transaction costs.

    When you (and your portfolio) are ready, I would receive dividends in cash and reinvest in what seems like the best value.
    Apr 19 11:44 PM | 2 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Thanks for the comments Craig. I agree completely: finding a plan that works for you is the most important thing.
    Apr 18 10:13 PM | 2 Likes Like |Link to Comment
  • Brookfield's Restructuring Could Lead To Big Gains For Investors [View article]
    Hi Global Value Investing. Brookfield does collect $6.47 per share in management fees. In fact, that is how they calculate their intrinsic value: the book value of their assets plus the management fees they collect on those assets.

    The two statements you quoted are actually saying the same thing, just in different ways.
    Mar 23 08:43 PM | 2 Likes Like |Link to Comment
  • Modern Dividend Theory Explained Part 1 [View article]
    I tend to agree with your comment regarding negative returns.

    With a stock or a bond, you will never have to mail the company/issuer a cheque either. The worst that can happen is the value of the security goes to zero.

    The same would be said of dividend stocks. You may never have to mail a negative dividend but the value of the stock, and its dividend stream, can go to zero.
    Mar 23 12:01 AM | 2 Likes Like |Link to Comment
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