Starting 5 years ago, buying 10 shares of RY.TO on the first of each month and DRIPing, here’s the line-up as of May 1:

1274 shares with a value of about $61,700
These cost $49,625 to purchase, and now pay about $2550 in annual dividends.

This equates to about a 5% dividend, and about 4.5% annual capital growth. Not exciting, but steady, and seems to be comparable to some other regular dividend payers. If you were to hold these, your return should increase as the value of the stocks and the dividend grows relative to your acquisition costs.

This indicates the truism of looking for growth stocks when a long time horizon is available and converting to income stocks when a steady income need be drawn.

DAvid

I know that its only a blog (your blog) absolutely, and that no comments on here should be considered as real advice … only individual posters opinions lol

Have you never seen, heard or read of any stocks that stop paying dividends, even lowering dividends, even to the point of stocks that fall off the edge of the table… even the so called strong ones in the past 10-years

I was trying to lead you into discussing the what-if , even if you were to cost average.

Take RY, RBC or BNS for example over a 5-year period and assuming that you purchased 10 shares every month for the past 60-months.

Do you know what the capital value of your holding would be today, what the +/- and what the gross dividend paying % of total investment versus current holdings?

Would appreciate if you could you do a chart for us on that and post it on this thread

Thanks

In defence of dividends though, I only buy those that have a strong history of payout. RY and some the other big banks have been paying their dividend for over a century, what makes you think that they will stop now?

I thank that Nates question is a good general question, and that your response was not one that I would have you handling my HELOC for investing, even on the TSX.

There is absolutely no difference investing in securities that pay dividends, either on the TSX, NASDAQ, DOW or the S&P

Sure in Canada there is the dividend tax credits, but no where have I seen a guarantee that dividends will always be paid, or that they will always be the same amount.

By purchasing more stock as a protection on the downside, is not a sure, safe or secure way for dividend paying stocks, unless of course your response was specifically talking about Trust-units as opposed to divenends.

Those dividends from stocks and the dispursements from trust units can change at any time, even disappear.Just becareful

Buying more for cost averaging is one thing, but saying that the TSX is different than the NASDAQ is incorrect

With regards to worrying, I don’t fret much about my dividend investments as lower prices means it’s time to buy more.