- Dividend growth investors focus on the income their assets produce. Over the years, in aggregate, our dividends grow. Very few income funds grow their distributions. While we are unsettled when markets fall, we are not devastated like the holders of funds who depend upon the size of their pot to fund retirement. The difference is subtle but huge.
- The purpose of data, charts and comments inside this site to assist subscribers to set up and run a dividend growth portfolio for themselves; a portfolio to deliver growing income in retirement. This information is, unfortunately, not free. For $50 new subscribers obtain access to a blog (two typed pages a week on various dividend related topics) with useful links and ideas about dividend growth investing learned over some 35 years. Inside also, there are lists of Canada's best dividend growth stocks in yield order, Ben Graham order, and C.A.P.E order. There is dividend growth data going back year-by-year for decades and Connolly Reports back issues for more than five years.
- What"s inside this dividend growth site?
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”.
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
- Second Quarter 2016 - concentrated portfolios
- First Quarter 2016 Connolly Report since 1981…thirty five years
- Fourth Quarter 2015 Why dividend growth investors do better.
- Third Quarter 2015 - CU
- First Quarter 2015 - ”[Bonds] are not intrinsically safe.” James Grant
- Fourth Quarter 2014 - You must construct an individual dividend growth portfolio
- Third Quarter 2014 Link to a retirement investing column in The Economist
- Second Quarter 2014 - You could lose half of your money in funds . . .
- First Quarter 2014 - the essence of dividend growth investing
- Fourth Quarter 2013 - Selling dud dividend growth common into frothy market
- Third Quarter 2013 What do dividend growth investors do that is different?
- Second Quarter 2013 - PBS Frontline - The Retirement Gamble - Dump your funds!
- First Quarter 2013 - dividends provide most of the return
- Third quarter 2012 - still “high valuations portend low returns from here” if you buy now
- Fourth Quarter 2012 - a growing income, up 9.6% in 2012
- Second Quarter 2012 - Started down, but risk on again
- First Quarter 2012 - Probable Outcomes
- Fourth Quarter 2011 - caution is the byword
- Third Quarter 2011 - observe comment titles below
- Second Quarter 2011 - no margin of safety
- First Quarter 2011 - market overextended
- Fourth Quarter 2010 - most stocks still expensive
- Third Quarter 2010 - Behavioural Investing
- Second Quarter 2010 - Wait.
- First Quarter 2010 - Seven lean years ahead
- DGDPG2013 - An example of how dividend growth drives price growth…
- Falling Market - some thoughts in June 2012
- 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
- under No-No financial products Target date funds/variable annuities;
- under Investment Topics Yield + Dividend Growth = Return
- When to buy? under Potpourri
What I do, in a sentence:
When they are rather value priced, I buy dividend-growing common stock and hold them and hold them for the rising yields.
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 . . .
The Connolly Report, about dividend growth stocks, by Tom Connolly (B. Comm, 1964) has been published continuously every two months since 1981. Now the printed report is quarterly. The on-line edition will be open to new subscribers in February 2015 when renewals for 2015 are over.
Wisdom: ”“The single factor that drives investor success is not picking winning firms, but rather the entry point at which the firms are purchased.”
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.
- New to investing? Some basic ideas to get you started...
- Guelph - our daughter was born here in 1968