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Dividend Investing at its Best

With all the negative attention the stock market has received over the past 24 months its easy for investors to get itchy waiting for turbulence and fear to take hold once again.

For the majority of 2010 all I’ve done is dividend investing at its best: dollar cost average (DCA) into my existing portfolio of high quality dividend stocks with cash, my line of credit and proceeds from the sale of portions of my portfolio as stocks move above and below my targeted allocations.

Dividend investing is supposed to be boring, infact super boring, and this is why the approach is so effective for investors who know how to construct a portfolio, maintain that portfolio and build its equity over a period of time.  Dividends paid in tax efficient cash each quarter are put towards buying more shares of underweighted stock positions fueling more dividends in future quarters slowing gaining ground one share at a time.  Read More…

Replies to this Post

  1. Markus says:

    That’s what I was going to say.

  2. Kajol says:

    You do realize there are tax shelters for didends such as RRSPs, right?

  3. Arlo says:

    The real issue isnt about investing in companies offering didends but the amount of tax one gets hit because of them. I have been avoiding them like a plague due to this issue.

  4. Jada L says:

    Lol, you always have the coolest pictures.

  5. Dion says:

    Any smart investor will have part of their portfolio in fixed income instruments such as didends.

  6. Sammi G. says:

    No offence but dividend investing is for old ladies and people who are ready for retirement.

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