JohnBlog

Lend me your mind's ear — communications and portals

Smiling through your dividends

leave a comment »

Seeds that grow

(Please see update on U.S. dividend stocks at end of article.)

I recently blogged about why dividend-paying stocks deserve their place in your portfolio. If you enjoy high speculation, these may not be the stocks for you. You may get more of a kick out of the potential plunges that could affect your portfolio, however, since the financial crisis, the stomach for significant ups and downs doesn’t appear to be as high for the average investor.

If you’re looking to have a portfolio with:

  • More protection against corrections
  • Solid earnings that are shared with investors

and

  • A history of outperformance during difficult economic periods

then dividend-payers are for you.

But let’s see if we can walk the talk regarding these investments. A quick look at the performance of dividend-payers over the last six months:

  • The Dow Jones Canada Select Dividend Index is up over 15 per cent
  • Over the same period of time, the DEX Universe Bond Index is down about 1 per cent

While there’s definitely a place for bonds in your portfolio, it’s hard to argue against the numbers above.

Dividend-payers have been kicking butt.

Interested in what dividend-payers can do for you portfolio?

Looking for a historical understanding of dividends in tough times?

Then go through the rabbit hole.

Follow up:

How about U.S. dividend-payers?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: