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| - | * Your Advisor - If he/she is trying to sell you some product, an ETF, for instance, ask her to jot down (right then) the annual income provided over the last ten years. Your are interested in a growing retirement income. If she won’t or delays, strike 1. ♣ Ask how he measures risk with equities. If she says beta, strike 2. ♣ Ask what the two components of long term return are? They should say yield and growth. Income might be an acceptable answer and maybe capital gains, but your advisor has something to learn. ♣ Your strike 3 question: Do you have a B.Comm? | + | * Your Advisor - If he/she is trying to sell you some product, an ETF, for instance, ask her to jot down (right then) the annual income provided over the last ten years. Your are interested in a growing retirement income. If she won’t or delays, strike 1. ♣ Ask how he measures risk with equities. If she says beta, strike 2. ♣ Ask what the two components of long term return are? They should say yield and growth. Income might be an acceptable answer and maybe capital gains, but your advisor has something to learn. ♣ A possible |
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| * 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. | * 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. | ||
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| - | Henry Mach’s previous book: | + | Henry Mah’s previous book: |
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| Think of a leading company’s common stock (never preferred) as a perpetual bond with a rising coupon/ yield. The more it rises, the safer your holding becomes. Eventually (after a decade or so), you’ll beat the market with yield alone and your capital will rise at much the same rate. Proof/data is inside dividendgrowth.ca | Think of a leading company’s common stock (never preferred) as a perpetual bond with a rising coupon/ yield. The more it rises, the safer your holding becomes. Eventually (after a decade or so), you’ll beat the market with yield alone and your capital will rise at much the same rate. Proof/data is inside dividendgrowth.ca | ||
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| * 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: | * 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: | ||
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| * **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' | * **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' | ||
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| * 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. | * 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. | ||
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| EXAMPLE: **August 2019 Connolly Report Blog summary**: 2019 dividend growth update ♣ Berkshire' | EXAMPLE: **August 2019 Connolly Report Blog summary**: 2019 dividend growth update ♣ Berkshire' | ||
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| Inside dividendgrowth.ca you will learn: | Inside dividendgrowth.ca you will learn: | ||
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| **WARNING about ETFs**: | **WARNING about ETFs**: | ||
