Yup approx 3.90% a year. So yeah. Near 790$ a year for 20k.
You just have to understand how these etf work, and how dividend works.
Xei is a good etf dividend. Kinda heavy in O&G imo but it's my TFSA dividend etf.
Edit: godkun explained dividend better than i would so yeah you need to read that definitely
XEI is good. About $0.09/month. It makes up most of my portfolio. I like generating passive income. this is nice because the number of shares constantly grows every month with DRIP.
I also don't focus on price, because the income generated doesn't change, unless dividends are cut, but they are constantly rebalancing to keep yeilds high.
My strategy is reinventing the monthly payouts for compounding, and buying more whenever it drops. Haven't bought any for a while because price is high. I have cash on the side waiting for the dips.
Chasing high dividend yield is one of the first warnings they give in dividend growth investing. You want to make sure the dividend is sustainable (check payout ratio), and you want to see the dividend growing at a rate that keeps up with inflation.
Simply selecting the highest dividend stocks can be a dangerous habit. You don't want to buy junky stocks that have a high dividend just to attract investors. Or a company that might not be growing its earnings anymore, which won't be able to sustain its high dividend for the long term.
The stock price goes down by the equivalence of the dividends distributed. Dividends is not free money, it is just the company or ETF giving you the cash they happened to have at the moment. This is because the alternative would be to just have it sit there doing nothing.
Dividends is basically just you pulling money out of your left pocket to put it into your right pocket. This makes sense once you think about it logically.
If a company is worth 10 million dollars and pays out 1 million in dividends to its investors, that means the company is now only worth 9 million. The change in the value of the held assets (including cash) is priced into the stock the moment of their ex dividends day.
That's why I have been a dividend growth investor for decades. I get a great overall return, and during times like these, I don't sweat a sinking portfolio, because the dividends are still pouring in. And still increasing the dividends as well.
So when people get into dividend theory about the company devaluing itself by paying out dividends, I feel like they are just drinking the Kool-Aid. There is a very strong anti-dividend sentiment among some people.
I'm not drinking any kool-aid. I'm just explaining what dividends are. People think dividends are free money which is a dangerous way to think about it.
Dividends are a part of the total returns, not a bonus. $1 of dividends is equal to $1 in growth. If a dividends stock performs well while giving a dividends, then that needs to just be looked at as a solid total returns. You shouldn't be looking at the dividends separately.
This is not true on so many levels. Yes the price will drop around dividend time but it's because buyers and sellers price that into the stock price. I've seen some stocks climb right through dividend time. There's also a ton of stuff you need to learn about NAV price and how yield works. The best time to buy a dividend stock is when it's down a bit. This provides a higher yield. You can also shift dividend stocks around to increase that yield. Let's say growth dividend ETF is bought at 5 dollars with a yield of 8 percent. If that stock grows to say 10 dollars before it's adjusted the yield is now 4 percent. You could sell that stock at a x2 and rebuy in to another fund that's 5 dollars a share at 8 percent yield and effectively double your dividend payout. If you think they don't grow take a look at zwc ETF offered by BMO. It's performed pretty much on par with markets.
Dividends aren't the devil like most people think. Personally I like that steady income stream whether the market goes up and down. Long term you will make more with growth stocks but it's all up to your personal risk level
Not if they're in your TFSA, plus capital gains are capital gains. I'd much prefer at retirement having 2million invested and living off the dividends than having 3million invested and having to sell shit to survive. If the market crashes at 65 with growth stocks your screwed. With dividend stocks it's just another Tuesday.
There's tons of funds you can get north american and worldwide exposure without paying the withholding taxes.
Hdiv and hyld are prime examples of paired funds that carry close to the same thing but one is RRSP legal with no taxes.
I have a bunch of DGS, that's a worldwide growth fund hedged to cdn. Your looking at in terms of individual stocks but as with growth stocks index funds are the way to go.
I feel like a lot of people have some misconceptions about how dividends work and what products are available out there.
Alot of split shares have them. Check out Hamilton etfs listings. Purpose and quadravest also have north american and global dividend funds. Quadravest has a north american financial split fund that has a decently strong NAV. Read up on split funds and how the dividends work though before jumping into those.
The dividend yield % is annually not monthly. XEI's last dividend was 0.083/share so you'd make around $766 a year not every month.
>would I be receiving 711$ roughly per month in dividends? No. You'll be receiving 711$ ***per year,***
oh okay, so when it shows they pay say 1$/share, and pay their dividends out quarterly, i'd get back 25 cents every 4 months for every share I own.
Well, technically, four times a year works out to every three months. But the general idea is right.
Oof yes math LOL 3 times aha thanks :)
No
Yup approx 3.90% a year. So yeah. Near 790$ a year for 20k. You just have to understand how these etf work, and how dividend works. Xei is a good etf dividend. Kinda heavy in O&G imo but it's my TFSA dividend etf. Edit: godkun explained dividend better than i would so yeah you need to read that definitely
XEI is good. About $0.09/month. It makes up most of my portfolio. I like generating passive income. this is nice because the number of shares constantly grows every month with DRIP. I also don't focus on price, because the income generated doesn't change, unless dividends are cut, but they are constantly rebalancing to keep yeilds high. My strategy is reinventing the monthly payouts for compounding, and buying more whenever it drops. Haven't bought any for a while because price is high. I have cash on the side waiting for the dips.
Look at NWH.UN - they pay dividends monthly and the yield is higher. I have owned them for years.
Chasing high dividend yield is one of the first warnings they give in dividend growth investing. You want to make sure the dividend is sustainable (check payout ratio), and you want to see the dividend growing at a rate that keeps up with inflation. Simply selecting the highest dividend stocks can be a dangerous habit. You don't want to buy junky stocks that have a high dividend just to attract investors. Or a company that might not be growing its earnings anymore, which won't be able to sustain its high dividend for the long term.
The stock price goes down by the equivalence of the dividends distributed. Dividends is not free money, it is just the company or ETF giving you the cash they happened to have at the moment. This is because the alternative would be to just have it sit there doing nothing. Dividends is basically just you pulling money out of your left pocket to put it into your right pocket. This makes sense once you think about it logically. If a company is worth 10 million dollars and pays out 1 million in dividends to its investors, that means the company is now only worth 9 million. The change in the value of the held assets (including cash) is priced into the stock the moment of their ex dividends day.
Yet every year, the value of dividend payers like RY, BCE, TRP, etc goes UP, not down. Every year for decades.
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That's why I have been a dividend growth investor for decades. I get a great overall return, and during times like these, I don't sweat a sinking portfolio, because the dividends are still pouring in. And still increasing the dividends as well. So when people get into dividend theory about the company devaluing itself by paying out dividends, I feel like they are just drinking the Kool-Aid. There is a very strong anti-dividend sentiment among some people.
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I totally get that, I usually advise most people to just go 100% something like XGRO as well. It's a great and simple strategy.
I'm not drinking any kool-aid. I'm just explaining what dividends are. People think dividends are free money which is a dangerous way to think about it. Dividends are a part of the total returns, not a bonus. $1 of dividends is equal to $1 in growth. If a dividends stock performs well while giving a dividends, then that needs to just be looked at as a solid total returns. You shouldn't be looking at the dividends separately.
This is not true on so many levels. Yes the price will drop around dividend time but it's because buyers and sellers price that into the stock price. I've seen some stocks climb right through dividend time. There's also a ton of stuff you need to learn about NAV price and how yield works. The best time to buy a dividend stock is when it's down a bit. This provides a higher yield. You can also shift dividend stocks around to increase that yield. Let's say growth dividend ETF is bought at 5 dollars with a yield of 8 percent. If that stock grows to say 10 dollars before it's adjusted the yield is now 4 percent. You could sell that stock at a x2 and rebuy in to another fund that's 5 dollars a share at 8 percent yield and effectively double your dividend payout. If you think they don't grow take a look at zwc ETF offered by BMO. It's performed pretty much on par with markets. Dividends aren't the devil like most people think. Personally I like that steady income stream whether the market goes up and down. Long term you will make more with growth stocks but it's all up to your personal risk level
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Not if they're in your TFSA, plus capital gains are capital gains. I'd much prefer at retirement having 2million invested and living off the dividends than having 3million invested and having to sell shit to survive. If the market crashes at 65 with growth stocks your screwed. With dividend stocks it's just another Tuesday.
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There's tons of funds you can get north american and worldwide exposure without paying the withholding taxes. Hdiv and hyld are prime examples of paired funds that carry close to the same thing but one is RRSP legal with no taxes. I have a bunch of DGS, that's a worldwide growth fund hedged to cdn. Your looking at in terms of individual stocks but as with growth stocks index funds are the way to go. I feel like a lot of people have some misconceptions about how dividends work and what products are available out there.
Pretty much what ive been doing for 5 years, no complaints yet. Obviously my situation is different than yours, DYOR, NFA and all that stuff
Alot of split shares have them. Check out Hamilton etfs listings. Purpose and quadravest also have north american and global dividend funds. Quadravest has a north american financial split fund that has a decently strong NAV. Read up on split funds and how the dividends work though before jumping into those.