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Investing

What is Dividend Investing? Why Should You Do It?

Mike from The Dividend Guy Blog and Dividend Stock Analysis wrote a great blog post over at My Own Adivsor that I'd like to share with my readers. Mike discusses the benefits of investing in dividend stocks, and my favourite the section on "Index Investing vs. Dividend Investing" is a must read. Mike writes:

"I chose dividend investing is because I wanted to count on stocks paying me more each year. When you select dividend growth stocks, you can expect to see your dividend payouts being increa…

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Don’t Have Any Money To Start Investing?

I sometimes hear from folks that they would like to start investing but don’t have any money right now. It’s true that it takes money to make money, however you might be able to invest in dividend stocks without requiring any new money.

Do you currently have mutual funds in a registered account like an RRSP, 401(k), IRA, or an employer sponsored plan? If so, you could transfer those investments into an equivalent trading account. You need a trading account in order to buy and sell stocks. An RR…

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Do You Know When To Buy?

Everyone has heard the phrase “buy low and sell high”. But how do you know when a stock is priced low?

In this blog post I show you exactly how to determine if a stock is priced low. But first you'll need to know these two terms: dividend, and dividend yield.  

Dividend

A dividend is a cash payment made to shareholders. For example the current annual dividend for Johnson & Johnson (JNJ) is $2.44. So if you own 100 shares in JNJ you will receive $244 each year for as long as you own those shar…

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My Dividend Retirement Plan

Well, this is isn't my dividend retirement plan, but it's very close. Dividend Growth Investor wrote a great post on his blog that I'd like to share with my readers. In fact, after I read his post I realized this is exactly what I would've written myself. Dividend Growth Investor writes:

"I invest in dividend stocks, in order to generate a sufficient income stream, that would meet and exceed my expenses in retirement. Retirement to me is the point where my dividend income exceeds my expenses, w…

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Are We in a Bull or Bear Market?

A reader recently asked: "I've heard about Bull and Bear Market... I wonder what's the definition of each one? and how do we recognize each one?" Great question!

THE SIMPLE EXPLANATION:

- A bull market occurs when the market as a whole is rising.

For example the DOW is at 12, 750 today, over the next several months or years if the DOW continues to rise say 13,000 13,500 14,000 then we can look back and say we were in a bull market.

- A bear market occurs when the market as a whole is declin…

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Should You Buy Low and Sell High or Buy Low and Hold?

A reader asked:

"When you buy dividend paying stocks do you usually hang on for ever or are you buying and selling stocks every few years. The problem I have is if you own a stock lets say Canadian Utilities (CU) on the TSX that I have purchased years ago and am getting probably 7% in dividend yield now would you hang on forever even if it seems to be in a decling trend now?"

When I buy dividend paying stocks, I am essentially buying a stream of increasing income. I focus on companies that…

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Do You Think Investing is Easy?

I’ve always said that investing is simple. But you don’t have to take my word for it, here’s a short excerpt from a book called “F Wall Street” by Joe Ponzio (page 16):

“Investing is not rocket science. You don't earn more if you have the higher IQ, nor do you need to be a math genius to make money. You can spend many hours a week or just a few hours a year investing and still earn satisfactory returns. Fifty years ago, investing was much more difficult. Before the advent of the web you had to …

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How Many Income Producing Assets Do You Have?

How many income producing assets do you have? Your house, car, clothes, paintings, motorcycle, and boat are not income producing assets.

In fact most of those assets cost money to maintain and operate. If your pay check is your only source of income you might be in trouble. What would happen if you lost your job? How long could you survive without a pay check?

If you are not happy with those answers then you need to start acquiring income producing assets. Quality dividend paying stocks are ex…

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Your Friend Just Gave You a Hot Stock Tip. What do you do?

A friend, colleague or relative just gave you a hot stock tip. What should you do? Should you run out and go buy this stock? No! The simple answer is, “Thanks, I’ll look into it”.


Buying a stock, bond, mutual fund, or any other investment without doing your own research is not investing it is speculating. Your goal is to maximize your returns, and minimize your risk. The only way to achieve that goal is to do your own research. This research doesn’t have to take long. Here are some basic ques…

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When It Comes to Investing, Should You Ignore the Media?

Should you ignore the media?

By media I mean television, radio, magazines, newspapers and internet news, and financial analysts. When it comes to investing your hard earned money, the answer is “yes”! If you want to invest successfully you need to learn to ignore the media, there is just too much noise out there. You have to understand that the media exists to make money for themselves first and foremost. Just like any corporation they exist to generate profits, and they do this by selling adve…

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