Are dividends on a power play?

Market Ethos.
16 January 2023.

Canadians love hockey, and why not? On a per capita basis, we are really good, producing some of the greatest players of all time. Another thing Canadians love is dividends or, more aptly, dividend-paying companies. So, are we also really good at producing some of the greatest dividend-paying companies? That might be a stretch. Investors love dividends for all the reasons you can read in the generic marketing material for the space – less volatility provides income to the investor that is taxed less than other sources, etc.

There are a couple of other reasons Canadians love dividends. Our banks didn’t have major issues in the 2008 global financial crisis, which certainly helped, given their large representation in the dividend universe. And who’s kidding who? Do many Canadian investors have fond memories of buying Canadian growth stocks? That is almost like a field of broken dreams.

Related articles

Market Ethos

Déjà vu

June 25, 2024. Market Ethos. Using the 1990s dotcom bubble as a loose comparison, is this 1997, 1998, 1999 or 2000? Are the four horsemen…

2 minute read

Market Ethos

Is inflation beat? Not so fast.

June 17, 2024. Market Ethos. We think inflation might cool more, but counter forces will probably limit the improvements. If the economy reaccelerates, inflation could…

2 minute read

Market Ethos

Everything in moderation

June 10, 2024. Market Ethos. Investors should start to think differently about portfolio construction and diversification. Call it diversifying your diversification.

2 minute read