Thursday, April 12

The Dividend Project - resources

Thanks to everyone who posted comments on yesterday's post. I am sensing that this is a topic that many people are interested in. I have started to spend some time crawling the web in search of information that will help us in this project and I have found a few to start with:

  • I already mentioned the Dividend Guy blog. There are a few articles that he has gathed partway down the left side of the page under the heading "TDGs Guide to Better Portfolio Returns". These cover areas such as Why Dividends Matter and Selecting Good Dividend Growth Investments.
    On the right side he also has a section called Tools. These may be useful to us once we get a bit further along...
  • At there is a link that says "just starting... some basic ideas" and leads to about 8 printed pages of information. I will be reading this over the weekend and coming back with a summary or any nuggets I manage to extract from it.
  • At there is a lot of content as well. I haven't managed to go through all of it, but it looks like a very useful site.

I have started a section of links on my blog for this project and these three will be available there. I am also adding a link to Frugal Trader's list that I used as a starting point for this project.

In addition, you may want to check out a recent post by Canadian Money who is also interested in this topic. And Frugal Trader also pointed me toward an Excel add-in that looks very useful. I will be trying it out next week and I will post a review.

I'm off early for the weekend tomorrow, so no more posts until Monday. Have a great weekend!


Middle Class Millionaire said...

Hi MD,

Great topic! I've been planning on retiring using a modified version of Derek Fosters strategy. I think it’s important to understand that a dividend growth strategy is a very long term strategy and the real benefits don’t materialize until years later (due to compounding). For example, if you bought a stock yielding 3.5% that grows it’s dividend by 10% annually, a decade later your yield would be 8.25% off your original investment, if the dividend increased 15% annually you’d be yielding 12.3%. In my opinion dividend growth is also good indicator of the health of a company as I would argue that companies with a rapidly growing dividend probably also have an increasing EPS and thus an increasing share price. Another very important part of a dividend growth strategy is the favourable tax treatment of dividends (varies province to province) but as an example, if you live in BC you can earn $68,700 in dividends before paying any taxes. That allows you to take home as much money as someone who makes approximately $100,000 in interest or employment income. FT has done a good post on taxes and dividends over at his blog.

Good topic and I look forward to reading the next post!


Canadian Money said...


Yikes...$68,700 dividend income before paying any tax at all.

That's incredible!