Raising dividends every year since 1972 is an incredible feat for Canadian Utilities. Their share prices fluctuate or aren’t immune to market volatility, but income streams flow continuously. Stocks in this elite group are reliable passive-income providers. Income investors, including retirees living off dividends, turn to Dividend Kings for capital protection and growing payouts. It earned the lofty status by raising its dividend for 51 consecutive years. The stock in this example is Canadian Utilities ( TSX:CU), the TSX’s only Dividend King. If you extend the holding period to 20 years, and the dividend yield remains constant, the money could grow further to $25,010.92. People avoid the stock market for fear of losing cash but forego the propensity to earn with total avoidance of risk.įor instance, your $10,000 today could compound to $15,814.84 in 10 years, including quarterly reinvestment of dividends, if the yield is 4.61%. Storing cash provides financial safety to many, except it also loses value when inflation is high, like today. Written by Christopher Liew, CFA at The Motley Fool CanadaĬash earns a zero rate of return, but you can put it to work by investing in dividend stocks.
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