Many investors I spoke to at a three-day investment conference last week extolled the virtues of the dividend stocks they owned. These investors loved how dividend-paying companies seem to just to keep going up, and the dividend money just keeps rolling in.

“It almost seems like a scam,” one investor told me. “I do nothing, and the company keeps paying me, quarter after quarter, year after year.”

Well, it is not a scam: you are giving your hard-earned capital in exchange for a return in the form of a dividend. Still, it is a pretty sweet deal, especially if you can find a company that continually raises its dividend, such as AutoCanada Inc. (TSX/ACQ), which has raised its dividend 10 separate times since 2010.  Read More…


  1. This is a very important point. Way too many people don’t understand the value of dividend income investing that they think that just seing simple capital gains on stock is all that determines the success of their stock portfolio.

    I’ve been investing in dividend stock for a better part of 25 years and it is still my favorite method.

  2. Wow the article mentions 9.5% annual returns. Can someone give me their favorite, most consistnet picks for dividends?

  3. It’s all about volatility. Putting your money into dividends helps reduce this risk by ensuring a steady stream. Me personally my ROI isn’t that high for divdends but i know i can count on them.

  4. I didn’t realize that dividends are a sign of better managed companies. Interesting. Makes perfect sense but i had always believed they were just companies on the tail ends of their life (no longer growing) and just looking to feed out the rest of itself to its loyal investors before eventually (decades later) closing shop. Clearly i’ve been wrong for years 😛

  5. I am still scratching my head on the tax benefit of dividends. From what i understand it is all about reducing the effect of double-taxation since if i recall dividends are paid to shareholders after the business has been taxed on their profit and then we the recipients of these dividends have to go about being taxed again?

    I was looking into what the tax credit is since i live here in Manitoba and couldn’t find it. Any help please?

  6. I am still pretty new to investing and is it wise for someone in their early 20s to be focusing on dividend stock or more growth stocks?

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