Al18
Full time employment: Posting here.
I ran across this article on dividend investing on Forbes a few days ago, and think it offers good investing advice Forbes Welcome
Are you a dividend investor?
Are you a dividend investor?
Are you a dividend investor?
I am a dividend "growth" investor, investing in stocks I think will consistently raise their dividends over time and are not over-valued. I have been doing this since 1993 with my entire portfolio, and would not have been able to retire 9 years ago otherwise.
Too bad the tax rates on divs have increased so much recently. In Alberta the max marg rate on divs is now 31.7%. Close to 40% in Ontario. Much higher than our U.S. Friends. Turns out that div investing is now not as tax efficient as total return investing in Canada.I'm generally a core and explore/satellite investor with the core portion in passive index funds & etf's (my DC pension doesn't have an etf option) and explore/satellite portion of my portfolio focused on dividend growth stocks.
My plan is to build a tax efficient base income with the dividend yields while hoping to still capture long term growth with the index funds & etfs.
I have to hold Canadian dividend paying equities to take advantage of a generous dividend tax credit. Unfortunately, the share prices of a number of the prototypical Canadian blue chip dividend stocks have taken a notable hit over the last year (due to the trickle down effect of the oil situation among other things) but on the positive, the dividends keeps growing.