Investor sticks to dividends

“After getting married I started to really focus on my future and when I looked at my nest egg, I thought it should have been a lot bigger,” Steve Wood says. So he decided to investigate. Mr. Wood ended up selling his mutual funds. “I learned how mutual fund fees were eating away at my return and decided to cut out the middleman by investing on my own.”

What resonated with him instead was investing in dividend stocks. “I read a lot of books, magazines and websites about dividend investing, and learned a lot. “My investment strategy is simple,” Mr. Wood says. “I buy solid, blue-chip Canadian companies that pay growing dividends.” He prefers to buy when the stock price is lower than normal and the yield is high. Bear markets are thus often good times to buy shares in these types of companies.

Source: Globe and Mail

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