Some say that equity markets are “risky.” In today’s world investors can buy 10-year Canada bonds yielding less than 2%. Given inflation in Canada which averages between 2% and 3%, it seems to us that bonds are incredibly “risky.” This is because after the effects of inflation an investor would be guaranteed a loss of purchasing power over 10 years. For a taxable investor the situation is even worse as the government will take up to 50% of your 2% yield, thereby making the total loss of purchasing power over the 10-year term even worse. A Leon Frazer portfolio, on the other hand, has a higher (dividend) yield than a 10-year bond.
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, 73% of Canadian stock market performance can be explained by the increases in the underlying dividends.
Fortis Inc., the Newfoundland-based utility company, is one of the largest and longest standing holdings in all Leon Frazer portfolios owing to its exemplary record for increasing dividends. For 40 straight years, Fortis has increased its annual dividend every year, building a perfect “dividend staircase.” Over time the stock price has little choice but to follow the dividend upward. We attempt to build Leon Frazer portfolios with as many of these “dividend staircases” as possible.
By Lenore Davis
Appearing on Business News Network (BNN), March 11, 2013, Ryan Bushell discusses Leon Frazer’s views on companies such as Scotiabank, Pembina Pipeline Corp, PotashCorp, and others. Click picture to view.
Appearing on Business News Network (BNN), January 3, 2013, Ryan Bushell tells investors “now is an important time to be investing in dividend-paying stocks.” Commentary on Bell Aliant, Baytex Energy, Crescent Point Energy, and Canaccord Financial. Click picture to view.
Lyle Stein tells Business News Network viewers to focus on resource stocks that pay dividends. Commentary on Leon Frazer’s 20% position in banks, including TD Bank and Scotia Bank. BNN clip from December 3, 2012. Click on picture to view.
There is a lot of negativity surrounding capital markets, but with the right conditions stock markets could be flooded with money
North American markets snapped back in the third-quarter 2012 but the recovery process will be slow and choppy, says Leon Frazer’s Q3 2012 Quarterly Review
Further proof of the benefits of investing in dividend growers, in both up and down markets, revealed in new study
Institutional investors need to be more focused on well-managed companies, intrinsic value, stable cash flows and risk-adjusted returns over time
There are two essential components to a successful investment plan, and one hurdle to overcome
A good retirement plan may help a retiree through the unexpected costs of catastrophic illness
Appearing on Business News Network (BNN), Oct. 25, 2012, Douglas Kee notes that “everybody is talking about dividends.” Commentary on Cenovus, Agrium, Enbridge and Chorus Aviation
“We want to collect dividends that grow,” Lyle Stein tells the Business News Network on Oct. 4, 2012. Includes commentary on Goldcorp, Research in Motion, Manulife, BCE and Apple
The JOV Leon Frazer Bond Fund will look to extending the term of bond holdings given the strong credit fundamentals of many Canadian companies, says the Leon Frazer Q3 2012 Quarterly Review
Since 1980, 73% of market appreciation can be attributed to increases in dividends so don’t get caught up in listening to all that awful global economic news
Lyle Stein comments on the state of the markets and provides commentary to the Business News Network audience on Fortis, Potash Corp., and Royal Bank
By investing in dividend-growing companies, older Canadians can afford to live longer
As baby boomers retire in record numbers, their financial readiness for retirement is being questioned. Retirees who have prepared their portfolios to generate a consistent stream of income will be better poised to meet life’s future challenges
North American yields resumed their downward trend in the second quarter of 2012, according to the Leon Frazer Quarterly Review
The second quarter of 2012 was once again a difficult period for equity investors in both Canada and the United States, says the Q2 2012 Leon Frazer Quarterly Review
As baby boomers age the demand for stable income growth with low volatility remains high
On a historical basis, government yields remain anaemically low, below both the annual inflation rate and the yield on the S&P/TSX Composite Index, reports the Q1 2012 Quarterly Review
Despite the recent out performance of US equities, the Quarterly Review reminds readers that Canadian dollar investors have not made positive returns in the US market for 12 years, and that includes dividends
US interest income falls by almost $450 billion while dividend income continues to rise
While governments teeter on insolvency, there is room for companies to grow their dividends
Investing in blue-chip companies in key industries such as the banking, pipeline, utilities and telecom segments may be boring, but it works, says the Leon Frazer Quarterly Review
Despite market volatility high-yielding stocks fare better than bonds
While the industrial and forest product sectors have been gutted, the TSX index has beefed up on financials and gold
Downside volatility, not seen since the global financial crisis, sent shockwaves through markets, reported the Leon Frazer Quarterly Review for the third quarter of 2011. Plus, the Review weighed in on debt, savings and what they means for investors
“Financial oppression” is a new term coined to describe today’s economic times – a time when governments set interest rates so low investors can’t maintain their standard of living. The only antidote? A dose of high-yielding equities
By Brian Wilson
By Bruce Ball and Dona Eull-Schultz
Saving rates are changing to deal with economic crisis. They may never go back