Advice | Experts say dividend-paying stocks are not for everyone

Lai started investing in his early 20s when ETFs weren’t widely available or popular. He started investing in mutual funds before moving on to individual stocks, such as Intact Financial and Manulife, which were paying dividends and continued to do so after the financial crisis hit.

Dividend payers are typically established companies that have excess cash flow so they start returning that cash flow to their shareholders, explained Robb Engen, a fee-only financial planner at Boomer and Echo in Lethbridge, Alta. “Dividend shareholders could do anything with that cash. They could spend it. They could invest it in a different company. So the value of the company just went down,” he said.

With a dividend paying stock like Enbridge, for example, the company is not quite so growth-oriented. Where a focus on dividend paying stocks might be beneficial is if you feel comfort from receiving a quarterly dividend, and that makes you hold onto the investment.

مصر أحدث الأخبار, مصر عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

In Your Corner: The house market has cooled. Is it still a good time to sell your home?You might not get the peak price you would have a few months ago, but you won’t be paying that peak price for your new home either, expert says. Keep waiting people! As the inventories pick up, so will competition and that will lead to further prices drops. Who believes the economy is weaker now than 2019 and things will return to mean. Why do people expect a bounce? cdnhousing cdnecon Just in time for election. guessing this is bought and paid for by real estate companies
مصدر: TorontoStar - 🏆 60. / 55 اقرأ أكثر »

Outdoor industry leaders say Alpine Club’s hiring of women leaders for first time marks ongoing culture shiftFirst female president of the Alpine Club of Canada says the ‘outdoors should be for everyone’ I will take a Male guide thanks
مصدر: globeandmail - 🏆 5. / 92 اقرأ أكثر »