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**WARNING about ETFs**: **WARNING about ETFs**:
-By definition, index ETFs can't win. And, as the market is high just now (Dec 21 2019 the Dow over 28,000 for the first time ever) ETFs will, going forward, most likely lose again. Returns are determined by valuation! Funds certainly 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.+By definition, index ETFs can't win. And, as the market is high just now (early 2020 ) the Dow over 28,000 for the first time ever) ETFs will, going forward, most likely lose again. Returns are determined by valuation! Funds certainly 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.
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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! 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 investing, to build a portfolio with a click or two. Ludicrous! I hold individual companies with a long record of increasing dividends.+  * 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.
Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks: Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks:
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