This quote by Tom Connolly summarizes why I am a Dividend Growth Investor:
"Dividend Growth Investors do not have to depend upon prices of stocks to finance retirement. It is the income these stocks provide we are after. Our income from Canadian tax-advantaged dividends went up last year. It will go up again next year. That's our objective ... growing retirement income."
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A Year Already?
15 hours ago
4 comments:
Tom Connolly is an advocate for dividend growth investing and is the author of the Connolly Report. More information can be found at his website: http://www.dividendgrowth.ca/
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Dividend Growth investing is a long term strategy. Nothing spectular will happen in the short term.
Home Capital Group would be my top choice.
Home Capital has increased their dividend 12 times in the past 5 years. That's more than any other TSX listed stock according to FP Data Group. The 5 year compounded growth rate for the dividend is 40%. This will compensate you for the low current yield. Its payout ratio is below 20% which means that the dividend is safe and has room to grow. The stock is trading at a P/E of 10x which is lower than the Banks. The company is also very good at limiting loan losses. A good entry point would be below $40.
Canadian Western Bank is also a good choice.
AGF has problems with mutual fund redemptions.
Thanks for the feedback. Be sure to check out Tom Connolly's website (dividendgrowth.ca) for more information to help you get started.
For more on Home Capital check out this post: http://www.thinkdividendsblog.com/2010/01/home-capital-group.html
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