Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
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This personal finance blog is home to the Canadian Dividend All-Star List. The website covers a variety of investing, personal finance and retirement topics, but most articles focus on attaining financial freedom through dividend growth investing.
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
“The concept of identifying undervalued and overvalued stock prices according to historic patterns of dividend yield can be applied to any stock with a reasonably long dividend history. However, investors who make the decision to include only high-quality, blue-chip stocks in their considerations will probably never regret it.”
Source: Dividends Don’t Lie – Geraldine Weiss/Janet Lowe
Why should you use dividend yield as a valuation tool for stocks?
The answer is quite simple.
It works.
Wow, that was my shortest article ever!
Joking aside, that really is the main point of this art ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
“Dividend Yield + Dividend Growth = Prospective Return”
Josh Peters, The Ultimate Dividend Playbook
Yield + Dividend Growth = Total Return Estimate. Such a simple formula, but you’ll see from US and Canadian examples that it’s also been surprisingly accurate. That said, it has some pitfalls to be aware of too.
Table of Contents
Yield + Dividend Growth Estimate = Total Return Estimate
Fortis (TSE:FTS; NYSE:FTS) Example
Yield + Dividend Growth = Total Return Estimate Continued
Testing the Total Return Formula Against US Stocks
Testing the Total Return Formula Against 78 Canadian Div ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
The Chowder Number/ Chowder Rule is all about finding the right mix between dividend yield and dividend growth.
In a perfect world, we’d all be investing in high-yield, high-dividend growth stocks. The reality is that many high-yield stocks have lower dividend growth rates than lower-yielding stocks.
So how do you find the right balance between dividend yield and dividend growth?
Enter the Chowder Number / Chowder Rule …
Table of Contents
What is the Chowder Number / Chowder Rule?
How to Calculate the Chowder Rule / Chowder Number?
Fortis Inc (TSE:FTS) Example
How to Calculat ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
Want to double your dividend income in 10 years?
Invest in dividend growth stocks that average +7% dividend growth per year.
Want to triple your dividend income in 10 years?
Add in dividend reinvestment with a reasonably high starting dividend yield.
A portfolio yielding 5% with +7%/year dividend growth will roughly triple its dividend income after 10 years if dividends are reinvested.
Before we get into the compounding powers of dividend reinvestment, let’s look at a “double your dividend income” example.
Table of Contents
How to double your dividend income with $100,000
Bottom line
The ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
During the Global Financial Crisis, no Canadian stock with a 10+ year dividend growth streak cut its dividend.
Looking for peace of mind high-quality investments that can weather recessions and continue to pay dividends you can rely on in retirement?
Well, start by investing in companies with at least 10 years of consecutive dividend increases.
Here are 3 reasons to invest in stocks with 10+ year dividend growth streaks…
Table of Contents
Reason #1: Long Dividend Streaks = High Quality
Bottom Line #1
Reason #2: A 10-Year Dividend Growth Streak Provides Peace of Mind
Bottom Line #2
R ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
Before I invest a cent of my hard-earned money into a dividend growth stock, I use these 7 dividend growth investing resources for every new investment.
I wanted this list to be valuable, so to make it onto the list:
It had to be a resource that I always use when researching or investing in dividend growth stocks, and
If there is a way to access the resource for free, I share it. As a result, I show you how to access all 7 dividend growth investing resources for free.
Table of Contents
#1 – Value Line – The Best One-Page Reports Out There
Dividend Growth Estimates
Financial Strength ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
In Canada there are 9 wide moat stocks and 100 narrow moat stocks, but which of these companies with strong sustainable competitive advantages make good dividend growth investments?
To answer this question, I did three things:
I researched all Canadian wide and narrow moat companies to identify 44 stocks with a 5+ year dividend growth streak.
I ranked them using a quality scoring system that includes:
overall safety,
financial strength,
credit ratings,
moat analysis, and
dividend safety.
To get a better sense of the best stocks to focus on, I provided additional valuatio ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
With only 9 wide moat stocks in Canada, narrow moat stocks are a necessary concession for anyone looking to build a diversified portfolio.
Now a narrow moat might not be as good as a wide moat, but narrow moat companies are still expected to maintain their competitive advantages for 10-20 years.
Not as long as the 20+ years you get with a wide moat stock, but still very good and definitely worthy of your consideration.
To help you on your hunt for high-quality stocks, I used Morningstar to find all 100 Canadian narrow moat stocks.
Table of Contents
25 Canadian Narrow Moat Stocks from ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
As dividend growth investors, we know that wide moat stocks make a good starting point, but it is just one of many considerations on our hunt for high-quality dividend growth stocks.
Which of these international companies with strong sustainable competitive advantages make good dividend growth investments?
To help answer this question,
I researched all International wide moat stocks to identify 23 companies with a 13+ year dividend growth streak.
I ranked them using a quality scoring system that includes overall safety, financial strength, credit ratings, moat analysis, and dividend safety ..read more
Dividend Growth Investing & Retirement | Financial Freedom through Dividend Growth Investing
2y ago
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products and services that have wide, sustainable moats around them are the ones that deliver rewards to investors.” – Warren Buffett
Why invest in wide moat stocks?
Well, wide moat stocks are high-quality companies that can maintain competitive advantages for decades. If you are looking for a first-rate company to invest in, wide moat stocks are a natural st ..read more