I started investing about 5 years ago. When I was just starting out, my Dad was giving me guidance, and as an income investor, I followed his path and started investing in "blue chip" companies that pay a good dividend.
Given that I'm Canadian, most of our market is based on Banks, Telecoms, Pipelines, and REIT's. So that's basically what I started with.
Enbridge, Bell Canada, TD Bank, Fortis, Brookfield Infrastructure, etc. They all pay a healthy distribution, grow dividends each year, and are stable business that provide services people need. They aren't going anywhere anytime soon, and have all survived multiple recessions / business cycles.
Most people have favoured growth stocks in the past decade, and I almost jumped into many of those attractive growth stocks at the peak of hype, especially when my dividend stocks didn't seem to be moving fast or at all. After some evaluation on my risk tolerance and my overall strategy, I decided that I like the idea of compounding dividends over decades, and then being able to live off those dividend payment in retirement. This obviously requires me to ensure the companies I invest in are safe, stable, wide moat, and not at risk of cutting the dividend.
Now I'm trying to grow my Dividend Growth Portfolio, and I wanted to know if there are any others who like this strategy - I'd like to hear your thoughts!
Submitted November 25, 2018 at 04:42PM by LuxGang https://ift.tt/2Sbnkdx
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