Category Archives: Dividend Investing

High-Yield Dividend Stocks Are Worth Less

Because of rising interest rates, high-yield dividend stocks are worth less. That’s because they’re seen as bond proxies. Additionally, rising interest rates also increase borrowing costs, which would be a drag on companies, particularly ones that have large debt levels.

In the last week, we added to a high-yield dividend stock, Medical Properties Trust (NYSE:MPW) in our RRSP retirement account.

The healthcare REIT is experiencing more headwind than rising interest rates.

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Why We Just Bought This Dividend Stock Last week

Wow, I can’t believe I just spent about 5 hours yesterday preparing the information to be handed to my accountant for income tax reporting. Though, I’m grateful that I had all the information I needed at my finger tips with the help of modern day technology — computer, internet, and spreadsheets!

I still managed to buy a couple of dividend stocks last week. Although we love juicy dividends, we don’t restrict ourselves from not buying a dividend stock because it pays a below-market yield, as long as its total return potential is attractive. One dividend stock we just bought was OpenText (TSX:OTEX)(NASDAQ:OTEX).

Image by Gerd Altmann from Pixabay

OpenText: Business Overview

OpenText is a global company that provides enterprise information management (“EIM”) services. Below is a snapshot of the tech company. It forecasts that its addressable market is growing 8% and it has a large customer base. 

Source: February 2022 presentation, Slide 1
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Magna International Stock: Not a bad buy Now

I’m not an economic expert. It’s impossible for me to filter all the macro factors and how they impact each of my stock holdings. Thankfully, there’s a way to still get good returns on my stock investments.

Image by Peter H from Pixabay 

One powerful tool is the financial information that’s available at our fingertips for anyone with access to the internet. You can dig out a company’s annual report and look at the trends of the key metrics. FAST Graphs provides a more useful graphical representation of this information.

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