Quotations by Mike Heroux

Key Dividend Growth Ratios: Dividend Yield > 3% (consider lower dividend yield stocks from US companies as they will count as the "secure" section of the portfolio); 5 Year Dividend Growth > 1%; Return on Equity (ROE = Net Income / Shareholder's Equity) > 10%; 5 Year Annual Income Growth Rate > 1%; Current Price / Earnings Ratio < 20; Dividend Payout Ratio (Dividends per Share / Earnings per Share) < 75% [2012] - Mike Heroux

Worse than a high dividend payout ratio (or following the later), there is a dividend cut. This should be an immediate sell as there is no hope for you to build a dividend growth portfolio with stocks cutting their dividends. However, you should have seen the dividend cut coming and sold the stocks way before that happens. High competition, decreasing sales and revenues growth mixed with an increasing dividend payout ratio should be enough for you to pull the trigger. [2012] - Mike Heroux

Until you have at least $5,000 to invest, I suggest you work around dividend ETFs or dividend mutual funds to start building your portfolio. I particularly appreciate dividend mutual funds as they allow you to invest on a periodic basis with no additional cost.  [2012] - Mike Heroux

In an ideal world, an investor would put at least $1,000 into a stock. In my opinion, this is the minimum required to avoid excessive transaction fees and start building a healthy dividend growth portfolio. If you can build a portfolio with 10 stocks that are worth between 20 and 25K, you will have a great portfolio started. [2012] - Mike Heroux

When you hold US stocks in your RRSP, there are no withholding taxes from Uncle Sam. In fact, Canada has a tax treaty with the US government that excludes retirement accounts (such as RRSP and RIF) from being taxed. Unfortunately, it is not as simple when you are buying the very same US stocks in a non-registered or cash account as well as the TFSA. If you are able to maximize both your RRSP and TFSA contribution, you should go for US stocks only in RRSP and Canadian stocks in your TFSA. Note that capital gains are not taxable in both RRSP and TFSA accounts. [2012] - Mike Heroux

A REIT must distribute 90% of its profit to shareholders. Therefore, REITs are literally passing their rents to shareholders after keeping a small portion for management and maintenance fees (including interest!). The REIT yield has been outperforming bonds while underperforming stocks. In other words, REIT represents a higher risk than bonds but a lower risk than stocks. Equity REITs can be active in several markets: Apartments; Commercial centers; Healthcare centers; Office complexes. [2012] - Mike Heroux