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Should you stay away from companies with high debt?

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Would you lend money to a friend who had little income and was swimming in debt? Of course not, because the likelihood of you getting your money back would be extremely low. The same is true for investing in companies which have high debt.

high_debtWhat's wrong with high debt?
A company with high debt is going to have a hard time paying back its loan if the economy starts to tank. Companies with high debt will have a difficult time surviving downturns. We know from experience t…

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Think you need lots of money to start investing?

You don't need thousands of dollars or millions of dollars to get started with investing. Just investing $10 a day could result in eventually earning over $31,000/year in passive income (dividends) and a stock portfolio worth over $1M.

Why do I need time and money?
In order to become a successful investor, you need time and money. The more money you have to invest the more dividends you can earn, and the more time you have the more you can reinvest and take advantage of compounding. Having bot…

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6 Bank Dividend Increases in One Week

Six Canadian banks recently announced dividend increases and share buybacks within the first week of December (2021). Continue reading to learn why they announced the dividend increases, and how this news impacts you as an investor.

Why did they increase dividends?
In November 2021 Canada’s Office of the Superintendent of Financial Institutions allowed the country’s banks and large insurers to resume dividend increases and share buybacks, undoing measures put in place in March 2020 to protect …

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What is Real Total Return?

In the last 6 months (May to November 2021) the Dow has gone from 34,756 points to 33,290, then up to 35,625 and then dropping to 33,843. What does this all mean? Stock markets are cyclical and it's impossible to accurately predict which way the stock market will go.

Markets are cyclical
This fluctuation is normal, many believe that the market is still high, and further declines are coming. I’m not going to make any predictions, in fact no one can accurately predict where stock prices will go.…

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Learn how this couple makes $30,000/month in dividends

Is it possible to live off dividends alone? Can dividends eventually cover your living expenses? The answer is yes and yes. This month I share with you a story of a Canadian couple earning $360,000 per year just from dividends.

$360,000/year in dividends
My friend Bob, the financial blogger from Tawcan.com, recently interviewed a couple on his site that are today earning $360,000 each year from dividends. Head on over to Bob's site to read this fascinating two-part series:

Living off dividend…

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Why do people invest in lousy companies?

Why do people invest in companies that are not financially healthy? I recently received this question from a reader, and today I'll answer that question.

What makes a company financially healthy?
A financially healthy company is one that is consistently profitable, has low debt, consistently increases shareholder value, sells a great product or service, and a number of other factors. To keep things simple, I created the 12 Rules of Simply Investing to help you determine if a company is a quali…

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Don't lose 65% of your orginal investment to fees.

When it comes to investing, everyone knows you can make money from collecting dividends and from stock price appreciation. But another way to earn more is to reduce or eliminate the amount you pay in fees, in your mutual funds, index funds and ETFs. Over time fees do add up and they take away a large portion of your investment....in some cases 65% of your original investment.

Why the fee?
All funds carry a fee, it's know as an MER (Management Expense Ratio). The MER includes the management fee…

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Are these your top 5 goals for investing?

When it comes to investing what are your goals? You might say "to make money!", which seems to be the number goal for most people. But what about risk and other factors? Let's take a look at the goals of the Simply Investing approach which I hope you will adopt as your own.

Goals of Simply Investing
The goals at Simply Investing are simple:

  1. Help you to earn more
  2. Lower your risk
  3. Save on fees
  4. Help you generate income and growing income, regardless of market conditions
  5. Save you time
  6. Bonus…

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Fees & Your 5 Common Questions to Investing

If you own any mutual funds, index funds or Exchange Traded Funds (ETFs) you need to understand the impact of those fees on your investments. A tiny fee of 0.08% can cost you thousands of dollars over the long-term. Even when people save and invest diligently over their entire lives in funds, they unknowingly lose thousands in fees, hence they have to continue working past the age of 65 just to get by.

What fee?
All mutual funds, index funds and ETFs carry fees, the fee is known as the Managemen…

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Who pays more dividends, Apple or IBM?

This month I would like to discuss the importance of dividend yield. The dividend yield determines how much you can earn. At the end of the day our focus is more on income generation than on individual stock prices.

What is a dividend?
A dividend is money that you receive from a company, just for owning their shares. For example, if a company is paying a $1/share dividend and you own 1000 shares, you will receive $1000 for as long as you own those shares and as long as the company continues to…

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