TSX’s biggest winners, bargain-bin stocks and a high flyer that may be running low: What you need to know in investing this week

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TSX’s biggest winners, bargain-bin stocks and a high flyer that may be running low: What you need to know in investing this week (subscribers) GlobeInvestor

Computers can win at chess, control driverless cars and predict the weather. But can they pick great dividend stocks? Srikanth Iyer is convinced they can,. He is the lead portfolio manager for the Horizons Active Canadian Dividend ETF , whose five-year annualized total return of 6.8 per cent was tops in The Globe and Mail’s recent survey of Canadian dividend exchange-traded funds. It also beat the annualized total return of 5.5 per cent for the S&P/TSX Composite Index over the same period.

Dividend investors may be leaving some money on the table, writes John Reese, CEO of Validea. Picking stocks based on their dividend payouts is a time-tested strategy, boosting returns for investors compared with the broad market and providing steady income. But company managements are increasingly using the share buyback as a way to return capital to shareholders, and strict dividend investing doesn’t capture that activity.

, which takes into account both dividends and share buybacks. Picking stocks with higher shareholder yields may be a way to beat the market and a dividend-only strategy.Shareholder yield: Taking both dividends and buybacks into account

 

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