Great video! I’ve been looking at a lot of dividend paying stocks in the utilities and finance sector, and they all seem to have huge dividend payout ratios. I know you went over some like Enbridge in your video, but are these payout ratios sustainable, even when considering the fact that they have a lot of current liabilities they need to pay off?
Yes, dividend cuts are always a concern. Enbridge I like, I think it's distributable cash flows are strong and consistent and it has a well diversified portfolio. Payout ratios are very volatile, if you look at Enbridge's payout ratios going back a few years it swings around wildly. I wish I could tell you that none of these dividends will ever get cut, but it's always a possibility. However, given previous track record and future outlook, I chose these stocks to make the list as the best ones to maintain its dividend in the future in my opinion.
Incredible informative content. I heard you mention CU Canadian Utilities at the beginning of your video. Any reason you didn't recommend it. Thanks again. Hope your channel grows to reach the monetization stage. It really should be there already.
Canadian Utilities has had a really rough year, if you look at the one year return it's been down over 20% which is a lot for a utility to go down. Their earnings have dropped down dramatically, which is unusual for a utility. Compare that to Fortis, which is also a utiliites, and it's almost recovered to pre 2020 market crash levels. I'm super close to monetization! I've decided to continue with the channel for the foreseeable future, I wasn't sure before but I've been getting a great response to it. Thanks for the support and words of encouragement!
@@WealthAwesome ah okay. Somebody yesterday recommended it as top first place company in our tsx or he just meant it was the best dividend paying company in Canada 🍁. Okay thanks again and once you're monetized you'll be in heaven here. ⭐⭐⭐⭐⭐
Thanks for the compliment! yes that is right. investopedia has a great expanded definition here of dividend adjusted growth: www.investopedia.com/terms/d/dividendadjustedreturn.asp#:~:text=A%20dividend%2Dadjusted%20return%20is,over%20a%20specified%20holding%20period.
Excellent content! I understand that Dividend stocks are mainly for passive income investment. Do you have a video or recommendation for capital growth recommendations? Asking specifically for RESP perspective so looking at 15-20 year long positions.
Hey Natalie, whenever someone asks me about cryptocurrency, I always tell them the same thing. You should evaluate the investment carefully. The first step is to make sure you understand exactly how the investment works. Then you want to figure out the risk/reward of going through with the investment. For me personally, crypto is out of my risk tolerance level so I've stayed out of it but you might find it differently. And I would say most investors have no idea how bitcoin really works, and if you don't understand something, you shouldn't buy it.
According to the buyupside stock return calculator, including reinvesting dividends over as long as there's stock data for, these stocks are all returning in the area of 10-12% annually on average. So if you reinvest dividends these are just as good as growth stocks, no?
Hello, thank you a lot for your interesting content ! I just have a little question for you. I studied a little the market these days and I stared at some of the Aristocrat Canadian Stocks. The problem is that the majority had a value who climb almost higher than before the pandemic. Do you know some Aristocrats who are a " good offer " ? Thank You ! :)
Hi there, thanks for the compliment! I don't make specific stock recommendations on this channel at this moment, but I do agree that the market looks overvalued overall. I take more of a long-term approach in my investing. If you buy good companies at a decent price, it's a good strategy for success. For people that are concerned with market timing, consider looking at a dollar-cost averaging purchasing strategy, or a passive ETF investing strategy that takes the market timing out of the picture.
It's a common strategy, but of course it has its risk if the stocks take a downturn, and you have to cash out of them to pay for other things. I would recommend this only if you're more experienced with investing, and can weather a long period without having to cash out as markets can turn at any time.
I think TFSA's are great to invest in, but I'm not a big fan of Scotia funds, or most big bank ones in general. Take a look at Vanguard or iShares ETFs instead
@@WealthAwesome it also depend on economy in general, now that we’re going through such a big inflation period the big bank are going strong.. I’ve bought Td a while back.. only putting some small amount of money every now and then.. now i got less then 2k in it and I’m 250$ in profit and they keep paying dividend no matter what
Uh ... yeah, that's the point. Dividend aristocrats are not going to be largely conservative players generating great cash flow for a long time. If you're going to disagree, add some weight to it and help out the community.
I've owned 5 of these Dividend Aristocrats! 😁 Doing well so far !
Great to hear!
Just subscribed! Thanks for sharing your ideas.
Thanks for subbing!
Did you know that one of the top share holder of fortis, enbridge, cnr and telus is Royal Bank.
No i didn't, but I'm not surprised as they are heavily invested in Canada!
You give excellent information.
Glad you think so!
Great video! I’ve been looking at a lot of dividend paying stocks in the utilities and finance sector, and they all seem to have huge dividend payout ratios. I know you went over some like Enbridge in your video, but are these payout ratios sustainable, even when considering the fact that they have a lot of current liabilities they need to pay off?
Yes, dividend cuts are always a concern. Enbridge I like, I think it's distributable cash flows are strong and consistent and it has a well diversified portfolio. Payout ratios are very volatile, if you look at Enbridge's payout ratios going back a few years it swings around wildly. I wish I could tell you that none of these dividends will ever get cut, but it's always a possibility. However, given previous track record and future outlook, I chose these stocks to make the list as the best ones to maintain its dividend in the future in my opinion.
Incredible informative content. I heard you mention CU Canadian Utilities at the beginning of your video. Any reason you didn't recommend it. Thanks again.
Hope your channel grows to reach the monetization stage. It really should be there already.
Canadian Utilities has had a really rough year, if you look at the one year return it's been down over 20% which is a lot for a utility to go down. Their earnings have dropped down dramatically, which is unusual for a utility. Compare that to Fortis, which is also a utiliites, and it's almost recovered to pre 2020 market crash levels. I'm super close to monetization! I've decided to continue with the channel for the foreseeable future, I wasn't sure before but I've been getting a great response to it. Thanks for the support and words of encouragement!
@@WealthAwesome ah okay. Somebody yesterday recommended it as top first place company in our tsx or he just meant it was the best dividend paying company in Canada 🍁. Okay thanks again and once you're monetized you'll be in heaven here. ⭐⭐⭐⭐⭐
What about BCE?
nice video, thanks!
Glad you liked it!
I’m sorry when you say dividend adjusted. Does that mean growth % + dividend yield? Thank you! Liked video
Thanks for the compliment! yes that is right. investopedia has a great expanded definition here of dividend adjusted growth: www.investopedia.com/terms/d/dividendadjustedreturn.asp#:~:text=A%20dividend%2Dadjusted%20return%20is,over%20a%20specified%20holding%20period.
Excellent content! I understand that Dividend stocks are mainly for passive income investment. Do you have a video or recommendation for capital growth recommendations? Asking specifically for RESP perspective so looking at 15-20 year long positions.
Yeah would you like just individual stocks, or are you interested in ETFs as well?
@@WealthAwesome both but I do lean more towards ETFs thank you!
Need to make small correction.
National Bank number of branches. Canada does not have 422 banks.
Thanks Ryo, must have been a typo
Hi Chris, do you think it's a good idea to invest in bitcoin right now given that its value has been steadily increasing for a while?
Hey Natalie, whenever someone asks me about cryptocurrency, I always tell them the same thing. You should evaluate the investment carefully. The first step is to make sure you understand exactly how the investment works. Then you want to figure out the risk/reward of going through with the investment. For me personally, crypto is out of my risk tolerance level so I've stayed out of it but you might find it differently. And I would say most investors have no idea how bitcoin really works, and if you don't understand something, you shouldn't buy it.
great video
Glad you enjoyed it Saad!
According to the buyupside stock return calculator, including reinvesting dividends over as long as there's stock data for, these stocks are all returning in the area of 10-12% annually on average. So if you reinvest dividends these are just as good as growth stocks, no?
With lower volatility and a focus on income
All companies with dividends under 2% are not considered dividend companies - with regular monthly or quarterly payments…
thanks
Hello, thank you a lot for your interesting content ! I just have a little question for you. I studied a little the market these days and I stared at some of the Aristocrat Canadian Stocks. The problem is that the majority had a value who climb almost higher than before the pandemic. Do you know some Aristocrats who are a " good offer " ? Thank You ! :)
Hi there, thanks for the compliment! I don't make specific stock recommendations on this channel at this moment, but I do agree that the market looks overvalued overall. I take more of a long-term approach in my investing. If you buy good companies at a decent price, it's a good strategy for success. For people that are concerned with market timing, consider looking at a dollar-cost averaging purchasing strategy, or a passive ETF investing strategy that takes the market timing out of the picture.
@@WealthAwesome Yes, ok, personally, I'm waiting for Fortis to see if it will go down in the next week :) Good day!
How risky would you say it is to take out debt at a lower rate (say 3%) to invest in these stocks that pay >3% yield?
It's a common strategy, but of course it has its risk if the stocks take a downturn, and you have to cash out of them to pay for other things. I would recommend this only if you're more experienced with investing, and can weather a long period without having to cash out as markets can turn at any time.
Metro vs Loblaws, which one has greater growth potential?
Tough choice, but I would say Loblaws over the long term
What do you think of using a tax-free savings account and buying Scotiabank index funds RSP’s?
I think TFSA's are great to invest in, but I'm not a big fan of Scotia funds, or most big bank ones in general. Take a look at Vanguard or iShares ETFs instead
@@WealthAwesome it also depend on economy in general, now that we’re going through such a big inflation period the big bank are going strong.. I’ve bought Td a while back.. only putting some small amount of money every now and then.. now i got less then 2k in it and I’m 250$ in profit and they keep paying dividend no matter what
this didn't age well for National Bank...
👍👍👍
Thanks Joe!
I am surprised it's young guy. selection sounds like from an old conservative guy. good luck. much better options there . respectfully dislike
Uh ... yeah, that's the point. Dividend aristocrats are not going to be largely conservative players generating great cash flow for a long time.
If you're going to disagree, add some weight to it and help out the community.
I am surprised it's young guy. selection sounds like from an old conservative guy. good luck. much better options there . respectfully dislike