The Reason for Dividends

  • 24 May 2019
  • Posted by admin

This blog is about investing for dividends. The Dividend-Café is a place where we can exchange ideas of what works, what doesn’t work, and how we differ in our approach to investing. The reason for dividends for us was to build a reliable source of income that would replace our salaries. In future posts I will attempt to give more details of how we built our portfolio.
I started investing in 1984 and, as many others do, had a lot of ups and downs while learning. Being fairly conservative I started reading newsletters to find out the “best way” to invest. The book, The Wealthy Barber by David Chilton was a great inspiration and got me going somewhat in the right direction. But it’s difficult, when you’re learning, to get any traction and see significant growth. And I also soon discovered that with mutual funds you’ll never really see significant growth because of high fees and such great diversification that you get the good companies along with a lot of mediocre and bad ones.
Then in 1995 I read a couple of magazine articles (but can’t remember now what they were) about dividend investing. That made so much sense to me and I started looking at companies that paid dividends. I know there has been a lot written on this subject and I followed I number of blogs to learn more. Here are some that you can learn from.
These bloggers are all on a journey to financial independence and will tell you how they’re doing.
My journey is now entering a different phase as I have retired from a long term job and our main source of income is our dividends. The dividend strategy is now providing us with more in dividend income than we ever had in salaries. So we don’t plan to touch the capitol any time soon.

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3 thoughts on “The Reason for Dividends

  1. HI Arnold,
    Nice looking site; clean, simple look. It is well thought out and organized. A great way to share you passion for the way you invest.
    BTSX is a similar style of investing. Most of our income comes from dividends too with no encroachment on capital.
    You reference three sites as educational sources. You might consider adding https://dividendstrategy.ca/stock-selection-method/ which is the BTSX website. It is written and managed by Matt Poyner who currently writes about it in CMS.
    I would be glad to contribute to you blog by writing an article about my experience with BTSX.
    I’m not sure how much you want to promulgate your blog. Without some effort it will be buried with many others like it. As a start, you should send the link to all our Share Club members and ask them to share it. Maybe CMS would reference it. The editor, Lana Sanachar would be the person to contact. Let he know you are a long time subscriber and a member of our SC.
    Search Engine Optimization is another tool. Our daughter Rebecca has training and experience with SEO if you want to contact her.
    I think your message is of value and sharing it is important. This is a great start and I applaud you for it.

    1. The BTSX is a very good way to invest and great for learning about Canadian companies. Thanks for mentioning it here Ron.
      I’m still new at this and didn’t see these comments while away on vacation. we went on a golf trip to Scotland and got to play the Old Course at St Andrews, among many others.
      will try to respond more timely in future.

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