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The Connolly Report (since 1981) is no longer printed. It's a blog for subscribers inside this site. The blog is four or so pages a month with scores of ideas, links, yield and dividend data (going back decades) about dividend growth investing. Summaries of printed reports over the last decade (up to December 2018) are inside too. report summaries

zero point eight percent (0.8%) was the return on equity funds (omitting Shopify) run by professionals in 2020. The TSX was double that at 1.6% in 2020. Oh my! Eighty eight percent of professional wealth mangers lagged the index (88%). This is why you must learn to invest in a few fine individual companies. The dividends on stocks followed inside this site rose 8% last year. This rising income made the companies more valuable: prices were up by 6.1%.

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why_dg_oct_2016.pdf Dividend Growth Investing

  • How can it be? How can a dividend increase affect the price of a stock? Especially if it's only a cent or two. It's unbelievably simple: an investment that produces more income becomes more valuable. Metro's dividend in 2019, for instance, increased from 18¢ to 20¢. That's up 11%. Do you believe that MRU's price will rise by 11% also? It will. The proof, developed over decades, is inside. Another: BMO's dividend went from $3.78 to $4 in 2019: up 7.3%. As a result, BMO's price will rise too. Year after year wealth/capital builds.

divup_priceup_77_87.pdf ← Evidence that as the dividend rises, the price will too (Aug 2020).

  • Dividend growth investors focus on the income their assets produce. Over the years, in aggregate, our dividends grow. From January 2008, the 24 Connolly Report dividend growth stocks grew 8.6% a year. The 2008 yield was 3.2%, so our return was 11.8%. Very few income funds grow their distributions. Dividend growth investors do not have to depend upon the size of the pot to fund our retirement. And here's the real bounty: our pot keeps growing as retirement progresses driven by dividend increases. A company that provides more income is more valuable: so, it's price rises too. It's not only true, but common sense. You can still join our group.

a_sulliedrrif_2021.pdf September 2021 two RRIF plans, ‘theirs’ and mine

  • How many stocks? (Dec 2020) John Maynard Keynes said “A careful selection of a few investments . . .” . In contrast, VEQT, the big Vanguard ETF, has 12,532 stocks. Which would you rather hold, a few quality companies or thousands of mediocre stocks? Do thousands of stocks make things safer? Most of the companies in the Connolly Report list doubled their income in the last decade. Does your retirement income double every ten years? It’s the cash flow that counts.
  • Portfolio Selection is my main March 2021 topic . . . starting from scratch. Which will be the first purchase right now for her new $75,500 TFSA. How does one decide. After 40 years of experience, it's well worth the $50 folks to get access. Also, in March, the revised Graham formula valuation sheet. Which of 30 dividend growth stocks are expensive using Ben Graham's formula from Chaper 14(ATD,for sure), which eight, with a long record of annual consecutive dividend growth, have sensible prices.
  • Why would you allow/trust a third party (advisor, so-called wealth manager), who has no interest in your welfare/no skin in your plan, to come between (sell) you and your company? Learn how to do it yourself.
  • Nov 2021 An index fund is a product created by ‘the street people’. It is flawed. Fatally flawed, actually. You can’t win with an index fund. It’s an average. Certainly an index contains good stocks but mostly the holdings are sub-par. But this is not the fatal flaw. Valuation is. The average long-term return of the market is some 9%. Folks are lead to believe that they can obtain the return regardless of when they invest. This is not true. Valuation matters: when you invest is critical. As I write this in late November 2021, the market (index) at 21,700, is way overvalued. Returns from here will be negative.
  • May 1 2021 - Why do 'they'* over diversify with scores of stocks and even bonds? 'Their'* fund can't be a loser alone. So 'they'* herd, run with the crowd of other *money managers. When 'they' fail conventionally, there's no pink slip. As a result, most wealth managers do not beat the market. More on this inside dividendgrowth.ca in April 2021 blog under HERDING
  • In 1990 I spent $2,450 for 200 shares of a bank stock. I registered it in our son's name. In 1998 the stock split 2:1. They mailed him another 200 share certificate. In 2004, the stock split again 2:1. This time they mailed another stock certificate for 400 shares. He has 800 shares now. You can multiply 800 by the current price of the stock to find the total value. For me though, what is interesting and profitable in retirement is the dividend cash flow. With the dividend now upbto $3.60 a share, these 800 shares pay $2,880 a year. That's more than I paid for the stock. My I love dividend growth investing. Inside this site there's a table detailing the progress of the price and the dividends and yield and p/e over over the last 30 years for BNS. Today January 22, 2021, I completed a table showing much the same data going back 20 years on 25 other Canadian stocks that have a long record of dividend growth every year. You can learn how to build $2,450 into $60,000 inside dividendgrowth.ca and have a worry free retirement. If you purchased a stock like this every year . . . This magic, however, does not work with ETFs. You have to buy stocks directly in a company yourself, not through a stock market middleperson. Shun wealth managers. It's easy…one a year. Consider this idea.

January 2021 blog inside this site (five pages): 20 year, year-by-year, dividend data which is updated for splits; you can take $7,000 per year from a $100,000 portfolio; our updated Streaker (at least decade long dividend growth record) List; my own 2020 RRIF withdrawal was 80% dividends (we eat less capital).

  • Target date funds bungle* up your retirement finances. How? Just as your equities become safer, before retirement via the build up of intrinsic value, target date funds automatically sell your stocks and buy more bonds. Just say no to target date funds. “As an investors time horizon lengthens”, Warren Buffett says, “equities become progressively less risky than bonds.” (2018 Letter, page 6) or this by Mr Buffett on February 27, 2021 “bonds are not the place to be these days” Tragically, more employers are defaulting to target date funds for pension plans. Absolute stupidity! And when bonds are in a fund, they lose their guarantee of your money back. ♣ I do not own bonds, never did, never will. Why not? The dividend on one stock in our portfolio was 32¢ when I retired in 1996. Now that dividend is $3.60 a share…up 10% a year. Why would I want to shift to fixed income? * bungle is informal for: mis-manage, work badly, damage or malfunction


Income Investing Explained by Henry Mah is just out - Henry answers questions about dividend income investing. I have just finished reading Income Investing Explained. It’s excellent. If you wish to learn about dividend growth investing, Henry's ideas will certainly help. Here's a sample from Chapter 5 (page 128)“ “Because capital preservation is always a concern for older investors, I strongly recommend that all stock investments be made in the highest quality dividend growth stocks you can find. Don't speculate or seek higher yielding stocks. Stick with the best of the best and take comfort in knowing that your investments will be safe and more productive than any fixed asset product.”


  • The December 2020 blog is inside this site. The 2020 data summary is there at the top of the December blog page: 28 companies showing year-by-year dividends for a decade across the page. And, on the left side is the average 2010 price, on the right side, the late 2020 price. This allows us to show CAGR for dividends over the ten years and CAGR for price for the same ten years. This data exposes the secret of dividend growth investing. It is there in plain sight with an 80% correlation: dividend growth of the 28 companies was an average 8% a year, price growth was 6.2%. You can easily pick out the winners (top of list which is in yield on 2010 price order) and the losers at the bottom. $50 for access to this PDF and ten years of Connolly Reports (back to 2009). to me in Kingston or our daughter in Toronto. If your retirement income is growing by 8% on average, it is more than doubling every decade. Does your retirement income double every ten years? Find out about dividend growth.
  • The wealth management industry has no skin in their game. And it really is a game for them (with your money). And in most cases, 'the middle people' have no obligation to put your interests first; no fiduciary duty. Do not outsource the job of managing your retirement portfolio to a professional. Most are infected with modern portfolio theory and have desecrated the traditional fundamentals of investing. Advisors do not realize that only four percent of companies provide most of the return. They want to sell you scores of securities (ETFs). And professional don't beat the market. As a result, they have changed the yard stick. Nasty people! Now they set up their own benchmark so folks won't notice professionals are losers, most of the time. Learn to invest on your own. It is easier selecting a few quality dividend growth stocks (and that's all you need) than being sold one of over one thousand ETFs. Most are steerage class. The ETF you are sold depends upon the advisor latched onto you. Nov 3 2020
  • Sept 2020 - Does the ETF the predator is trying to sell you provide an increasing income? Ask. Insist on seeing the last ten years of distributions for the ETF. Why this question? It's the increasing income that drives things*. Growing income is what you want during retirement. The more your income grows, the less of your savings you'll have to withdraw. Ten years ago our largest portfolio provided $26,367 a year in dividends: now it's over $40,000. * price in particular.
  1. ETFs - Nov 2021 - Remember/realize that ETFs were invented so that some ‘middle-person’, ill-educated advisor could get between you and direct investing in a fine company and siphon off a fee.
  • Risk Profile Questionnaire (new Aug 2020) - When you open an account, 'they' want you to fill in their risk profile questionnaire. DECLINE IT! Say no! Tell them you are aware of the risk and that you have a clearly thought out asset allocation. If you wish, tell them you mitigate risk with quality companies and that you believe “as an investor's time horizon lengthens…equities become less riskier than bonds” (Warren Buffet's Feb 20 Letter, page 6). ♣ If you want to get out of their office with out getting hooked by them, here are two questions they can't answer. #1 Going back ten years, tell him/her to write out the annual distributions from the specified ETF. You are interested, tell them, in a growing cash flow in retirement. #2 Ask them to hand-write out the promise that they will put your interests before theirs (FIDUCIARY DUTY).

Advisors pay no price for being wrong. Your interests and the person trying to sell you the ETF are not aligned. Don't let advisors 'play' with your hard-earned retirement savings. And they do 'play' with very polished nonsense and by clicking a few URLs.

  • Setting up a portfolio yourself: (Rob Carrick, Nov 14 2019)


I would suggest that you do not want or need an advisor (certainly not a robo advisor) to set up a portfolio for you. Advisors, knowing little about investing, will put you into ETFs (a lot of mediocre securities providing little income). People who flog ETFs aren't social workers: most have no fiduciary duty to put your interests first. To build wealth, you must learn to set up a portfolio yourself. It is easy. There are close to a thousand ETFs. There are only a few score of good dividend growing companies. I use the acronym TULF to help select a Telecom stock (with recurring income); a Utility that has decades of consecutive dividend increase (your retirement income); a Lower yield stable, food retail stock and a Financial (any big bank). Rob Carrick wrote about TULF in November of 2016:



  • Learn to invest directly in companies yourself, not through middlemen (the so called wealth managers) whose income is from other people's money (annual fees). It's rather easy, really, to do it your self. There are only a handful of great Canadian companies to select from. With ETFs, on the other hand, there are over a thousand.
  • 25% more - July 24 2020 - How you can increase the cash flow from your retirement capital by 25%? Connolly Report June 2020 blog. SWR - You can raise you sustainable withdrawal rate from the 4% promoted by Wm Bengen to 5%. I have in hand a five page paper on this topic by Jan Blakeley Holman at an investment firm in the States. She's correct. Actually, you can raise your safe withdrawal rate to 7% a year with dividend growth according to Peter Lynch. I link the ‘Worth’ column in our January 2021 blob inside this site and comment on it and the criticism of Lynch’s column.

♦ Feb 5 2020 * Wealth Management - When you hold * individual stocks in a discount brokerage account, there are no on-going annual charges. The banks and other financial intermediaries do not make money on your money. For the financial institutions, this is not good. As a result, they had do to something to generate fees, for doing, essentially, nothing! They invented a contrivance: ETFs. The banks now even discourage you from buying individual stocks. * HOLD! And I mean hold. You must understand why dividend growth investors hold. With each dividend increase, our yield grows. The company becomes more valuable. So, logically, the firm's stock price must increase. Move from being a dividend investor to a dividend growth investor. You can't build wealth with a dividend ETF. They are packed with higher yield dividend stocks. The managers have forgotten that return = yield + growth. Yield alone does not do it. Here is evidence from 12 companies that shows as the dividend goes, so does the price (from 2008 to 2018). And this period, notice, contains the financial crisis.


  • Feb 18 2020 - Huge. There is a huge difference between a dividend stock and a dividend growth stock. You can't build wealth with ordinary dividend stocks (unless you are lucky and happen to latch on to a company that some day the market gets excited about. The key to our success (explained inside this site) is rising yield/growing cash flow that make the stock more valuable.
  • The purpose of data, charts and comments inside this site to assist readers to set up and run a dividend growth portfolio for themselves; a portfolio to deliver growing income in retirement (up 8.2% in 2019) This information is, unfortunately, not free. It is unbiased, though, and built on close to 40 years of research and experience. Refer to the About Us page for details. Join our group.

July 2020 - You have to ask if advisors really have your interests at heart when their organization is fighting the authorities to keep deferred sales charges…commissions spread out over years ahead.


The valuation of the market at the point when you are sold an index ETF significantly determines the return you will return. The market made a new highs in early 2020. What's next? The market went up for years. It was foolish time to buy. Better prices have arrived. ETFs, know, are essentially cattle class ante: no service, no fiduciary duty, clutches of mediocre stocks and you still pay annual fees. For what? A couple of clicks by someone who knows little about real investing because they have been infected by modern portfolio theory.

  • Advisors pay no price for being wrong: best to avoid them and their ETFs.
  • Retirement Planning - “If you are planning to retire in 10 to 15 years, we think you should consider buying stocks that have long histories of dividend increases. While investors tend to look at the current yield (the indicated dividend divided by the share price) of a stock, we believe yield of cost)the indicated dividend dividend by the share purchase price) may be a more accurate measure of the long term value of a dividend.” [S&P's Outlook]. Standard and Poors listed 22 stocks in order of their yield on cost. The average, after a decade was 15%. Are you getting 15% on your retirement investments? Connolly Report Oct 2004

Retirement income up from 25¢ a share to $3.60 on one of the companies I bought in 1990. Two hundred shares were purchased for $3.64 each. Two 2:1 splits since then mean we now have 800 shares paying $3.60 a year. Details going back the 30 years are inside for subscribers (Oct 2020 blog page). And notice, we are getting 100 percent of our money back each year now ($3.64 price vs $3.60 dividend).

  • May 19, 2020 → Retirement Investing If anyone would, you'd think Jonathan Clements, a reporter with the Wall Street Journal since 1990, would get it right. But he didn't. Mr Clements omitted the concept of dividend growth in a column on retirement investing. In the opening statement of his February 1, 2004 column in the Sunday New York Times (link: February 2004 Connolly Report), Clements argued “that the stock bond mix you hold in retirement shouldn't be radically different from the mix you held just before quitting the work force”. He is right of course, and Clements had some compelling arguments and other good ideas in the column. But he missed what could have been his best point. Clements said “if you are determined to spend only income, there isn't much incentive to hold stocks, with their miserable 1½% average dividend yield. Instead we are almost inevitable driven to buy bonds and other investments that generate a fair amount of income.” TC: If a person owned common stocks before retirement, as Clements maintained in his opening sentence, surely some of those stocks, with dividend growth, would be yielding more than the index yield of 1½% going into retirement. If the dividend goes up, Mr Clement, the yield rises too. Look into dividend growth. After a decade, the average yield on original cost of Connolly Report stocks was 8.1%* (eight point one beats the market with out counting capital gains). Now, here's the bonus…the double double (Tim Horton and I both went to St. Mike's). CAGR on dividends was 8.2%* and, because dividend growth drives price growth, Jonathan, price CAGR was 8.6%* from 2009 to 2019. With dividend growth a company's yield grows over time and enhances retirement income. In fact, the need for any bonds is often eliminated. In his 2018 Letter to Shareholders, Warren Buffett put it this way: ” . . . eventually stocks become safer than bonds … *The Connolly Report dividend growth summary, year-by-year and decade long CAGR on dividends and CAGR price is prepared every Fall. It's part of your $50 access fee. This year's report might be the last CAGR as next year I'm 40 years with the report and I'm eighty. Time to quit!
  • “If bonds are supposedly safe”, a reader asked Rob Carrick for his August 24 2021 column, “ why are my bond ETFs losing money?” Rob’s answer was fine, here’s mine. People ‘think’ bonds are safe. Bonds are not safe. Bonds are a risk asset just like stocks. I do not buy bonds, never have, never will. My income from quality common stocks grows, year after year. Good stocks become safer as their cash flow grows. Bonds don’t.
  • After a decade or so, quality dividend growth stocks provide yields which outpace the TSX and that's without factoring in appreciation in the stock price. Learn about this inside. The entry fee is $50. Alternatively, read Building Wealth with Dividend Stocks by Joseph Tigue or ♣ Your Growing Income by Henry Mah. You'll be tens of thousands of dollars ahead. We are hundreds of thousands ahead having started at the turn of the century. If you are not disciplined and patient, forget it and index with an over-diversified ETF full of mediocre issues. Quality does it, holding does it. Facts about dividend, as the dividend goes so does the price, say, do not cease to exist because one ignores them.

EXAMPLE: August 2019 Connolly Report Blog summary: 2019 dividend growth update ♣ Berkshire's prime goal is … ♣ portfolio selections . . . ♣ two stocks mentioned . . ♣ Is refuge in bonds needed now? ♣ Keynes on portfolio construction ♣ What did Buffett says to concentrate on in his 2019 Letter? What's his prime goal in deploying Berkshire's capital? ♣ What the average rate of dividend growth since the war? ♣ With our yield growing each year, what kind of yield can you expect after a decade? And our capital grows at the same rate, right (no question mark) Why?♣ Why the 4% Rule is bunk for us? What's wealth? ♣ Portfolio Spending Rate (four paragraphs of comment on AAII Journal).

Inside dividendgrowth.ca you will learn:

  • that as the dividend grows, so will the price of your quality rising dividend company. We constantly compare dividend growth and price growth. The correlation, according to Ned Davis Research is over 80% after a decade or so. It's truly amazing! For instance, Empire's dividend was 4¢ a share in 1997. Now the dividend is 46¢, up 11.7% a year. This drove the price from $3.05 to $37 a share, up 12% CAGR. Do your saving grow at 12% a year?
  • Discover that ETFs allow advisors, who know little about investing, to play with the hard-earned money of savers using the faulty concepts of modern portfolio theory: over–diversification, beta and market efficency.
  • Inside you will learn how to scrap just about the entire methodology of modern portfolio theory and return to the timeless principles of investing. Take your sacred savings out of the hands of middlemen who have no skin in your game.
  • Oct 1st 2019 - a short essay on the inferior performance of professionals . . . you'd never believe why most pros can't beat the index. It's why I do not buy ETFs.
  • how to select the few quality companies you need to build wealth.
  • discover the value of yield data . . . yields send signals
  • that the real goal of advisors is not aligned with yours
  • why ETFs are hawked on low fees and what's essentially wrong with ETFs
  • that yield alone does not move the needle. What does?
  • how a 'greater dividend return' (growth) lowers uncertainty
  • why not to be sold preferreds or bonds
  • the calculation to do before buying a stock
  • from year-by-year dividend data sheets (not just a five average) going back to the turn of the century for 35 companies
  • seven characteristics of any investment
  • asset allocation in May 2019 blog
  • obtain proof that returns are determined by valuation
  • Philip Fisher's ideas on lower-yield but higher-dividend growth companies
  • why we don't buy bonds . . . since 1979, on $100,000, bonds earned just $1.6 million, equities returned $7.5 million
  • how quality stocks become safer than bonds (W. Buffett 1918)
  • Ideas and opinions expressed in this blog should not be taken as any type of guidance.

Join the winning group!


By definition, index ETFs can't win. This was proved again beginning on February 24th 2020 ETFs will, going forward, most likely lose again. Returns are determined by valuation: the price you pay to get in. Funds lost the last time the market was high. From 2000 to early 2009 the TSX gained only 0.74% a year. . . less than 1% a year. Over about the same decade, however, the CAGR* for dividend growth stocks was 9.6%. You do not buy an index ETF when the market is high. *compound annual growth rate In 2008, the market was high. From 2008 to 2018, dividend growth on the stock the Connolly Report follows was 9.0%. In the same period, the TSE was up only 1.6%. ♣ There are stocks in the index that do not pay a dividend, let alone raise their dividends. Where will your retirement income come from? Yields on ETFs are low. If you buy a stock that does not pay a dividend, you are betting someone else will pay a higher price than you did. Your savings are sacred: don't let someone who has no skin in the game, play with your money. Learn to do it yourself.

This investor likes a lot of dividend growth stocks:


Martin Mittelstaedt's June 15 2012 column in the Report on Business discussed the cost of a dollar's worth of dividends. “Behind rising dividend yields, a hidden warning for [the] economy”.


Most investors do not know, let alone believe, that as the dividend rises the price of the stock will also rise. Think. If a company is throwing off more cash each year (dividends), it's more valuable. Inside this site I prove this in many ways. Here is just one example from Burton Crane's 1959 book (The Sopisticated Investor, page 13) If an investor had put $10,000 into each of the various 101 NYSE stocks in 1913, by 1953 the dividend received would have been $10,140,258. What had the price of the stock grown to? $10,141,731. As the dividends grow, so does the price of the shares!

  • ETFs allow so-called 'wealth managers', who know nothing about proper investing, to build a portfolio with a click or two. Ludicrous! I hold individual companies with a long record of increasing dividends. ♣ Here's another reason I never buy an ETF: AIMCo. It seems one of Alberta's pension traders lost some $2.1 billion in trades linked to volatility. AIMCo executives have been fired. Money manages toe the line. Portfolios are all too similar. If the managers don't conform and lose, they're out. We, as a result, with individual portfolios can win by selecting a few the best dividend growth companies and not adding scores of poor quality stocks.

Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks: http://seekingalpha.com/article/271326-9-real-world-reasons-to-own-dividend-growth-stocks?source=from_friend


  • DGDPG2013 - An example of how dividend growth drives price growth…
  • Living from dividends in retirement WSJ_May10
  • A few items down under Evidence it Works , I've keyed a paragraph and link to a Fortune column about dividend growth investing - November 1990 - Income, my true love…
  • Yield on Cost: If you bought 1000 shares of Toromont in 2005, your yield on the cost then would now be 2.9%. No big deal, eh! However, if you purchased 1000 shares of Toromont ten years ago for $8,130 your yield on cost would now be 7.4%. That's not bad. Now, if you had bought the 1000 shares of Toromont back in 1990 for $750 your would have received close to $4000 in dividends over the 20 years, be earning 80% on your original investment and had 536% of your original investment paid back with the dividends. Twenty years is a long time, but WOW look what your $750 would be earning now. In addition, you'd have a capital gain of…well work it out. What is the price of a share of TIH now. Multiply by 1000. And you bought 1,000 shares for $750. Maybe you had better investigate dividend growth investing. Data courtesy of MacDougall, MacDougall and MacTier

<box 50% red|What I do, in a sentence:>

When they are “sensibly” priced, I buy dividend-growing common stock and hold them and hold them for the rising income/yield. </box>

When they are value priced, I buy common* shares of companies with a good record of dividend growth and hold them for the rising income. In 2008 our dividend income rose in spite of the turmoil by 9.9%. Did your income rise by 10% last year. Our income will be up again in 2010 too. Our retirement plan is working. It's not the value of the capital that's so important, it's the income it generates…tax advantaged income…secure income. Except for Telus in 2002, the last time there was a dividend reduction in a stock in my list, other than Manulife in early August 2009, was during the last century (TRP Dec '99). Before that: NA and RYL in 1992. Dividend reductions from good dividend growers are rare events.

Since 1981…every two months for 30 years . . .

* I've never bought preferred shares, or bonds or mutual funds.

The Connolly Report, about dividend growth stocks, by Tom Connolly (B. Comm, 1964) was published continuously every two months since 1981. Now the actual printed report is over. The on-line blog and dividend growth data, inside this site, should continue into 2020 for a bit at least. That would begin our 40th year.

Wisdom: ““The single factor that drives investor success is not picking winning firms, but rather the entry point at which the firms are purchased.” I forget the attribution of this gem.

The Investment Zoo by Stephen Jarislowsky - the best Canadian general investment book ever. Unfortunately, The Investment Zoo is out of print (Oct 2014).

Lowell Miller's The Single Best Investment - Creating Wealth with Dividend Growth is the best book on dividend growth investing…though with American examples. A book report is inside this site for subscribers.

Building Wealth with Dividend Stocks by Joseph Tigue (he worked for S&P for years…they have the data) is also a great book on dividend investing, but again it's American data. Nine of Tigue's pages are worth the price of the book. Chapter 5 is the best. The essence of dividend growth investing is outlined in the middle of page 66 of Building wealth with Dividend Stocks. I prepared a book report for subscribers: it's inside this site.

  • Guelph - our daughter was born here in 1968 -
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