December 31, 2016

Over the long-term, companies that pay and grow dividends significantly outperform the broader market, with the added bonus of also being less volatile.  A sustainable growing dividend limits downside to a stock during periods of market panic and provides a consistent signal of progress as time passes.  According to our research, over the past three decades, greater than 50% of Canadian stock market performance can be attributed to the increases in the underlying dividends.

Annualized Return

The geometric average profit (expressed in percentages) earned by a portfolio or investment over a given time period. An annualized return provides a snapshot of the performance of a portfolio or investment as measured on a given date and does not provide any indication of its volatility.

Annualized Volatility

The average variation in returns (expressed in percentages) earned by a portfolio or investment over a given time period. An annualized volatility provides a snapshot of the average variations in returns of a portfolio or investment as measured on a given date and does not provide any indication of its performance.