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My Best Investment Yet

275.97% return since I first purchased shares in TransCanada Corporation (TRP) in 2000. The return includes dividends, which I discussed in an earlier post. 275.97% return sounds like a really big number, but aside from the dividends I have not received a penny of profits yet. Why? Because I haven’t sold my shares in TRP yet, perhaps I never will. Why? Because my dividend yield based on the original purchase price is now 11.94% which is better than what I can earn in a savings account, term depo…

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Proof of Profitability

The following four paragraphs come from Kelly Wright and I could not have said it better myself:

"From our perspective and experience, the cash dividend is the more attractive profit path when investing in the stock market. In the first instance the cash dividend is just that, cash in hand; a tangible return on investment. Unless a company is committing outright fraud, a practice that will typically be short-lived, the cash dividend is evidence that the company is indeed generating profits; a c…

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Understand this important factor and become a successful investor!

Actually there are a number of important factors, 12 to be exact. I call them the 12 Rules of Simply Investing and I cover them in great detail in my online Simply Investing course. Today I am going to describe one of the 12 important factors the P/E Ratio. Understand this ratio, and you will save yourself from making poor investment decisions and save thousands of dollars in the process.

Before I knew what the P/E Ratio was all about, I did indeed waste thousands of dollars on lousy investment…

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Saying good-bye to two stocks in our portfolio

This week I say good-bye to two stocks in our portfolio. It’s been a great number of years, but it was time to part our ways. The split wasn’t accidental, in fact this week the Dow closed over 12,000 points for the first time in 2 ½ half years. When this happens I typically use the time to consider selling stocks which have in my opinion not performed well.

I sold Weis Markets (WMK) and Southern Company (SO) this week. I bought WMK back in 2003 when the company was undervalued and had an amazin…

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Long Live the Dividend!

This is a follow up to my previous post about dividends. When talking about dividends I always get the same two comments from people:

  • Dividends are insignificant, a few cents here and there is not going to make me wealthy.
  • Dividends are not guaranteed, companies can stop paying dividends at any time.

The first comment was addressed in my previous post; I showed how increasing dividends can actually result in double-digit returns. I showed my personal example of earning over 11% annually w…

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Dividends Are Key

Most people dismiss dividends; most people don’t even know what dividends are. In today’s blog I’m going to share with you my personal story of how I’m earning double digit returns and without risk with one of my investments.

Dividends are cash payments made out to shareholders. Basically the company is sharing profits with the owners, the shareholders like yourself. For example if you own shares in company XVY and they pay a dividend of $0.85 per share and you own 1000 shares, you will receive…

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The High Cost of Mutual Fund Fees

$321,000 lost to fees 

$1000 invested in the stock market 50 years ago would be worth $514,000 today. However with fees of 2.2% the investor would only be left with $193,000 today. $321,000 would have been lost to fees.

Speaking in Toronto on December 4, 2000, John C. Bogle, founder of the Vanguard Group, presented, in great detail, data to prove that "mutual fund investing is an expensive home to long-term investors." One thousand dollars invested 50 years ago in the S&P 500 would have grown …

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Welcome to the Simply Investing blog!

Why you should read this blog...

To learn how to make money. Save time, and reduce your risk. Investing does not have to be difficult or time consuming. In this blog I will share my experiences, and tips on becoming a successful investor.

Why I created this blog...

To change the world, one person at a time. When you have financial independence a lot of problems including stress go away. Financial independence give you time to enjoy the things in life that really matter, time with family and f…

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