moneygardener

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.