Should you believe the hype?

Should you invest in companies that have just gone public? Should you invest in the hype?

What is an IPO?
Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to the public. Companies use an IPO to raise money for growing their business. Once a company goes public, it is able to issue more shares in the future if it needs to raise more money.

What's the Hype?
IPOs are generally preceded by media hype, this is designed to generate d…

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What's passive income and how can you earn more of it?

What is passive income and how can you earn some?

Passive Income
Passive income is money you earn when you are not working. You can earn passive income while you sleep. Your day job does not provide passive income because you have to show up at work and trade your hours for money. Passive income doesn't require you to trade in your hours.

Where to find passive income?
I believe the best and easiest source of passive income comes from earning dividends. A dividend is the money you get for ownin…

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How do you invest successfully?

Anyone can invest in stocks, mutual funds, index funds, ETFs, or in real estate. But how many know what they are doing? How do you invest successfully? Successful investing requires an understanding of the following six tenets:

Ignore the Noise
Ignore the "noise" in the media. Ignore the so called "experts", the internet, television, and magazines are full of "advice" that will lead you astray. Remember the media are corporations that exist to make a profit, and profits come from increasing view…

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Don't Panic When Stock Prices Drop

The key to successful investing is buying quality dividend paying stocks when they are undervalued. A dividend is the company sharing its profits with you the shareholder. In the long-run you can actually receive more in dividends than what you initially paid for the stock.

Suppose a company is paying $1 each year per share, and you own 1000 shares, you will then receive $1000 every year as long as the company continues to pay the dividend and as long as you continue to own those shares. …

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Transitioning from Mutual Funds to Your Own Growing Portfolio

Like most people you probably have an existing portfolio made up of mutual/index funds, GICs, bonds, and/or term deposits. Long-time readers will know the benefits of investing in dividend stocks and creating your own stream of growing passive income. So, how do you go about transitioning from mutual funds to building your own portfolio?

The transition is going to take time, so don’t rush anything. It took me almost 3 years to completely get rid of my mutual funds and build a stock only portfol…

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6 Steps to Safely Doubling Your Money

It’s possible to double your money by investing responsibly. Here’s how to do it in 6 steps.

Step 1: Dividends Are Key

Invest in companies that pay dividends. As a shareholder, you are part owner of the company, and as part owner you are entitled to share in the profits of the company. Dividends are part of the profits the company shares with you the shareholder. Here are some examples of companies and their annual dividends today:

  • Coca-Cola, $1.56
  • Colgate-Palmolive, $1.68
  • Target, $2.48

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3 Steps to Investing Successfully

Get Rid of the Noise

1. Stop listening to the financial media (TV, online, magazines). The financial media are made up of corporations. A corporation only has one purpose: to make money. The media makes money by selling advertising space. Their "articles" are not designed to help you, they are designed to increase ratings and readership so that they can charge more for advertising.

No One Cares More About Your Money

2. No one cares more about your money than you. Your financial advisor cares …

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How can you make money with dividends?

I've created a short video (5 mins) to show you how you can earn passive income with dividends.

They say a picture is worth a thousand words, then a video must be worth more! In this video I cover:
  • What is a dividend.
  • How to make money with dividends.
  • Learn how I invested $2479 in one stock and have received $4606 just from dividends alone.
  • Dividends continue to go up regardless of stock price.
  • Coca-Cola has been paying dividends to shareholders since 1893.
  • 60 years of consecutiv…

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With the market drop, is now a good time to invest?

If you are going to buy index funds, ETFs, or mutual funds the answer is no. 12 months ago the Dow was sitting at 20,269 and today it is at 24,640. Broadly speaking the market is still very high. You should not buy stocks when they are overvalued.

Buy Low
You can invest in individual stocks, but you have to be very selective. Only buy quality stocks when they are undervalued.

Here’s how you know if a stock is undervalued:

  • It’s current dividend yield must be higher than it’s average divi…

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How Much Are Your Investments Costing You?

Do you own any Mutual Funds, ETFs, or Index Funds? If so, do you know how much you pay in fees each year?

What is the fee?
Each of the investment products I listed above have fees. The fund company has to employ fund managers and staff, has to pay for office space, marketing, and advertising. As a fund investor you have to pay for the cost of running the fund. This fee is called the Management Expense Ratio (MER), and is easy to find out how much you are paying.

Mutual Fund Fee Calculator

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