Category Archives: Dividend Investing

1 Cheap Dividend Stock with a 4.1% Yield

I hope everyone is enjoying their Labour Day long weekend. I took a little vacation by having a mini-golf outing and enjoyed delicious Korean food with friends. Now, back to a cheap dividend stock with a decent dividend yield.

Investment-grade retailer Canadian Tire (TSX:CTC.A) isn’t doing well from high inflation and rising interest rates because both lead to lower consumer spending and is a drag on results.

Image by THAM YUAN YUAN from Pixabay

The dividend stock has been in a downward trend since peaking in May 2021 after a tremendous run from about 140% from the pandemic market crash bottom.

2021 results are hard to beat. Canadian Tire had a 45% jump in adjusted earnings per share (EPS), which is a far cry from a normal growth rate. This is why its year-to-date net income dropped 11% versus the same period last year. Normalized diluted EPS saw a more palatable drop of 2% to $6.16.

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Make Top-Notch Passive Income With Dividend Stocks

Identify a list of solid dividend stocks that grow their dividends over time. Ideally, these dividend stocks should outperform at least the market (if not also their respective industries) in the long run. Aim to add shares when the dividend stocks are cheap. And then you’d be pretty much set for making top-notch passive income with dividend stocks.

Its track record of dividend growth is set to continue

One dividend stock that fit very well is Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP). Since it was spun off from Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM), BIP has increased its cash distribution every single year. BIP’s 10-year dividend growth rate is 9.9%.

So far this year the company is making excellent progress — funds from operations (“FFO”) per unit growth was 11% in the first half of the year.

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3 Big Reasons Why I Bought TELUS Stock Last Week

TELUS (TSX:T)(NYSE:TU) isn’t the cheapest dividend stock out there. However, this suggests that it’s relatively resilient, defensive, and predictable.

Why might investors invest in TELUS stock? It could fit the portfolios of income investors seeking passive income, for example.

Image by StockSnap from Pixabay

I said I was buying TELUS and four other dividend stocks during this market correction. Here are three big reasons why I pulled the trigger on TELUS shares last week.

Track record of dividend growth

TELUS stock has paid an increasing dividend every year since 2004. That’s a pretty long track record among the Canadian Dividend Aristocrats. TELUS ranks as one of the top 20 Canadian Dividend Aristocrats in terms of dividend-growth streak. This track record is a confidence booster for prospective investors.

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