The Dividend Guy Blog
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One Guy's Journey to Freedom Through Passive Income. A Dividend Growth Investor. My name is Mike and I'm the author of The Dividend Guy Blog since 2010. Follow this blog to know about passive income through dividend investing.
The Dividend Guy Blog
3h ago
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Easy solutions can involve serious risks. Here’s what to consider before doing Short Selling, Profit Protection, and the Chowder Rule.
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You’ll Learn
Short selling occurs when an investor borrows a security, sells it on the open market, and expects to repurchase it for less money.
Why would an investor short-sell its shares? What are the benefits?
The risks of this strategy are real and investors could lose a lot of money!
Sometimes, an expert issues a ..read more
The Dividend Guy Blog
5d ago
In September of 2017, I received slightly over $100K from my former employer, representing the commuted value of my pension plan. I decided to invest 100% of this money in dividend growth stocks.
Each month, I publish my results on those investments. I don’t do this to brag. I do this to show my readers that it is possible to build a lasting portfolio during all market conditions. Some months we might appear to underperform, but you must trust the process over the long term to evaluate our performance more accurately.
Performance in Review
Let’s start with the numbers as of April 5th 2024 (be ..read more
The Dividend Guy Blog
1w ago
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It is frustrating to pay currency fees on investment. Many investors feel like a part of their money is lost and useless. Canadian Depositary Receipts (CDRs) have been created to solve that problem. Now the question is, is it too good to be true?
You’ll Learn
A Canadian Depositary Receipt (CDR) is equivalent to US stocks but is traded in CAD. It provides a currency hedge and allows fraction shares.
CDRs have been inspired by ADRs (American Depositary Receipts), which have been around for a long time. While they may look similar, they’re a totally different product.
CDRs’ main goal ..read more
The Dividend Guy Blog
1w ago
Can ETFs and stocks coexist in a portfolio and make that portfolio better? ETF or index ETF investing versus do-it-yourself dividend growth investing is always a big debate. You know I favor stock investing, but I keep an open mind. There is room for ETFs even if you invest in stocks.
I see both ETF investing and dividend growth stock investing strategies work very well. Should you put both in your portfolio? It depends. Let’s elaborate.
So yes, I see situations in which combining individual stocks with an ETF, or several ETFs makes a lot of sense.
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Adding different a ..read more
The Dividend Guy Blog
2w ago
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Sector allocation and diversification are essential aspects of a portfolio. But sometimes, too much is as hurtful as too little… Let’s discuss diworsification, its impacts, and how to maintain a well-balanced portfolio.
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You’ll Learn
We must first define good diversification. What does it mean to have a balanced portfolio?
Although investing across all 11 sectors is not a problem per se, it could become a burden if investors select industries they don’t understand just for the sake of diversification. Mike exp ..read more
The Dividend Guy Blog
2w ago
Real estate investment through REITs (Real Estate Income Trusts) is not only popular because REITs distribute generous dividends, but also because they’re easy to understand. We can easily picture an apartment building or an office tower and imagine tenants paying their rent. Investors are willing to purchase units of those businesses in exchange for income and peace of mind.
REITs are landlords; they own and manage real estate in exchange for rental income. They have properties such as apartment complexes, hospitals, office buildings, timberland, warehouses, industrial facilities, data center ..read more
The Dividend Guy Blog
3w ago
All investors share a goal. Making profit. How do you know when to cash in on your winners? A stock is up 20%-50%-75%. Will it keep going up? Is it about to crash? You feel you should sell, but you like that stock… Selling winners isn’t easy.
Sell Costco at $385 because of a gain cap trigger
Some put a limit on the stock price gain, for example, when they’re up 50% they sell the position. As a dividend growth investor, I choose stocks I want to keep for a long time, not for a quick buck. When you hold on to solid holdings for a long time, you can get to triple-digit growth—much more interestin ..read more
The Dividend Guy Blog
1M ago
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Buying at all-time high is frightening for a lot of investors as a mistake becomes costly! Considering the current markets high prices; should you wait or should you buy? How to determine which stocks are worth a spot in your portfolio? Let’s talk about valuation, Dividend Discount Model (DDM), yield history, PE ratio trend, value score, payout ratios and more!
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You’ll Learn
We can’t do this episode without talking about valuation. To Mike, it is closer to fortune tell ..read more
The Dividend Guy Blog
1M ago
Four steps to reduce risk in your portfolio ahead of whatever happens next, and to keep investing confidently even with the current high market. Yes, the market is high, almost the highest in the last 34 years except during the tech bubble in 2000.
The Shiller CAPE ratio compares market earnings over time. It shows that the overall market is trading at nearly 31 times earnings. In other words, the entire market’s P/E ratio is 31. That’s expensive, and rattles a lot of investors.
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What do we fear?
We fear what could happen next. A mar ..read more
The Dividend Guy Blog
1M ago
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It’s easy to understand a positive dividend triangle, but how to explain a weak one? This episode was inspired by a webinar attendee who asked what to do with a Dividend Triangle showing a negative EPS. Should you sell on downward trends, red flags, and suspicious numbers? Let’s find answers!
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You’ll Learn
We can’t start this episode without a reminder of what is the dividend triangle, which is positive 5-year revenue, EPS, and dividend growth.
Mike explains how he uses the Dividend Triangle ..read more