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.

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