It’s time to get obsessed (again) with dividend stocks

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Canada,Yield,Dividend

The Dow Jones Canada Select Dividend Index has gained 15 per cent since the end of June, after spending the previous two-and-a-half years going nowhere

Autumn is in the air and a nation waits with bated breath for the return of its beloved pastime – dividend investing.

While that’s the biggest net outflow in nearly three years, it’s a mere trickle that could easily become a torrent. Up until a few years ago, dividend stocks were the only game in town for income investors. There was a very simple reason for this: Yields outside of the stock market were trash. Between 1977 and 2023, an investment in high-yielding Canadian equities would have grown at more than four times the pace of the same amount of money parked in the broader Canadian stock market, according to data compiled by Norman Rothery, founder ofFor a couple of generations, that was the status quo. It went on so long, everyone assumed it to be the permanent order of the financial world.

 

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