moneygardener

Why Shoppers Drug Mart Should Raise Its Dividend

To me, not even nudging it up a few pennies is foolish...

Why I Bought CAT

Would it though? Is anyone buying this for the yield, or expecting it not to be cut? The dividend was an afterthought for my purchase.

High Expectations for Canadian Banks Is Unrealistic

First off to Seeking Alpha, the title of the article is not proper grammar; please revise.

To Chez,
Just as the sell off was overdone, the rally is overdone in Canadian banks. I would have alluded to all banks if I actually felt that way. I feel US banks offer better long term value still.

All your points are common knowledge and I was not disputing any of them except for the fact that I did not say that a 4.7% yield is unsustainable; just not as attractive as 7-9%. The point is, what has changed since the yields were 7%+, not much. I had as much confidence in the dividend then as I do now. These should be bought when fear is commonplace not when euphoria overshoots on the upside. Any return on investment in these slow growth entities has been diminished significantly since Feb-March.

After a Dividend Freeze: Hold or Sell?

Dividends are not the be all and end all. Consider other characteristics and why you bought the company in the first place. In these times companies are freezing dividends like crazy, they certainly can not all be bad firms.

Trading Under Book Value

Gino I think you are oversimplifying. Price to book is not simply a reflection of financial wherewithall (free cash flow etc.). The ratio also reflects the earning power of assets that contribute to book. A tech firm will always have a higher price to book than a resource firm, regardless of their balance sheet.

Bank of America Seems Serious About Retaining Its Dividend

Glad I didn't add to my position.....what a mess!

TD Bank - Too Good to Pass Up

You could argue that the Canadian economy is a bet on the U.S. economy.

Sysco: A Surprising Inflation Hedge

agree fully with jep

TD Bank - Too Good to Pass Up

TD is indeed a good bank. Their Canadian retail franchise is a step above. Canadain consumers are seeing rough times but this is prices into the stock at current levels. 6% yield that I consider to be relatively safe makes me really not care too much about the next few years. The share price can fluctuate but I'll be happy collecting my dividends and knowing that TD will excel long term. It is really a proxy on the Canadian economy which will recover mid-long term.

Companies I Invest In? Those With a Future

If every company I own cuts its dividend by 50% then I am probably making some bad decisions by trying to buy quality stocks when they are cheap and yielding more than 4.7%. Are corporations that manufacture branded alcoholic beverages, and produce and distribute electicity likely to be affected by a very weak economy, probably not to th extent that they'd cut their dividend 50%.

For that matter, will insurance companies and banks in Canada be in situations where they'll be forced to cut their dividends? Perhaps, but I am betting that they won't. Bank of America cut their dividend by 50% after losing billions on bad mortgages, etc., yielding over 8% at times, and making two industry changing acquisitions. Canadian financial institutions are in much better shape than any of the major U.S. banks that have faltered or cut their dividends.

Surprise: Bank of America Cuts Dividend By 50%

As much as I like companies to 'pay daddy', these are unprecedented times and i belive that the CFC and MER acquisitions will pay dividends in the future.

Dividends: A Bright Spot In a Bleak Time

Saying that my yield is going up is not an accurate way to represent anything. My yield on cost will only go up if the companies that I own raise their dividends or I buy more at depressed prices. I don't really expect my income from investments to decrease, at the very least it should grow more slolwly than it has in the past. This will give me an opportunity to buy more shares at depressed prices.

General Electric Presents a Dividend Opportunity

GE is a stock you buy and put away. The dividend is solid and they are targeting all of the right global trends.

Husky Energy: High Yielding Oil Play

Husky just raised their dividend by 25% and announced an earnings increase of 89%, the stock is now yielding about 4.9%.

I am a little confused as to where this conversation has gone. A yield of 4% for any stock is pretty solid if the underlying growth is still there. Yes dividends cushion falls, another reason why dividend investing is a great strategy for long term capital appreciation.

Husky Energy: High Yielding Oil Play

While I am certainly not an 'expert'. A rising dividend with a starting point absolutely beats inflation unless the rate is out of control. Canada's inflation rate is expected to peak at around 4.3%, but is usually kept below 3%. Husky is not a pink sheet stock for me, as I live in Canada. In Canada we have few energy stocks that yield at this level of dividends which are very tax favourable.