moneygardener

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.

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.

Why I Traded Petro-Canada for Husky Energy

No regrets Sean. Since April 27 both stocks are up about 15%. The nice thing about keeping the exposure in the same sector is that theoretically they should both have the same reaction to high oil. The yield and dividend growth are the key factors for the switch though.

Husky Energy: Still Pulling the Dividend Sled

I have made an error on this post. The current dividend should read '$0.40/share'.