Stock & Bond Quotes

Smart beta index funds are cheap, compared to actively managed funds. But they cost a lot more than most standard index funds. Strategies based on a cherry‐picked past might sell new Wall Street products. But they aren't always better for investors. That's why I suggest that you keep things simple. [2018] - Andrew Hallam

Investing in a longer-term bond or GIC may produce a better ultimate result if interest rates remain at current low levels; whereas, if rates rise, a series of shorter-term bonds or GICs may ultimately prove more rewarding. GICs are typically issued with maturities of one to five years while bonds usually come with original terms of three to thirty years. [2018] - Larry Bates

For a given shift in interest rates or financial strength, changes in the market value of long-term bonds will be much greater than price changes of short-term bonds. For example, a 1% increase in interest rates would cause the market price of a 3-year $10,000 bond to decline by around 3% or $300; whereas a $10,000 30-year bond would likely drop in price by around 20% or $2,000. (Note that bond market price changes don't much matter if you hold a bond to maturity.) [2018] - Larry Bates

High-quality government bonds issued by the federal government and the provinces are an option if you have at least $25,000 or so to invest. (Note that bonds issued by Canadian provinces offer yields higher than federal government bonds.) If you choose to buy individual bonds directly, I recommend sticking with less volatile, shorter maturity bonds (5 years and under) so you get the opportunity to acquire new, higher coupon bonds sooner if interest rates move up. [2018] - Larry Bates

What if, as a result of coming into a chunk of cash from an inheritance, home downsizing, sale of a business, a retirement package, or some other windfall, you have a large amount to invest in stocks? You may risk buying high at the top of the market. As an alternative to making single, large stock market actions, consider immediately investing only a portion of the amount you have earmarked for stocks, say one-quarter or one-third of the total, and commit to a short-term Clockwork Investing program for the balance, placing equal portions in the stock market at pre-determined dates over the next several months or couple of years. This technique, known as 'dollar cost averaging,' makes for a smoother ride when placing large amounts in the stock market. [2018] - Larry Bates

In the long term, bonds don't make as much money as stocks. But they're less volatile, so they can save your account from falling to the bottom of a stock market canyon if the market gods want a heavy laugh. [2017] - Andrew Hallam

The safest bonds you can buy are first-world government bonds from high-income industrial countries. Slightly riskier bonds can be bought from strong blue-chip businesses such as Coca-Cola, Walmart, and Johnson & Johnson. If you're looking for a safe place for your money, it's best to keep it in short-term or intermediate-term (such as one- to five-year) government bonds or high-quality corporate bonds. You can buy a short-term or intermediate-term government bond index, and you never have to worry about an expiration date. It will keep pace with inflation over time, and you can sell it whenever you want. [2017] - Andrew Hallam

When interest rates rise, bond prices fall. When interest rates fall, bond prices rise. In either case, if you hold a bond to the end of its term you will, barring default, get exactly what you paid for. Generally speaking, short-term bonds pay less interest as they are seen as having less risk since your money is tied up for a shorter period of time. Accordingly, long-term bonds are seen as having higher risk and pay more. [2016] - J L Collins

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

Over time, the average P/E ratio for the stock market in general has been around 14 to 16. That means that throughout history, investors have paid around $15 dollars for $1 of earnings. [2009] - James DiGeorgia

In general, the larger the stock, the better that technical analysis and other tools will work for you. [2009] - James DiGeorgia

I invest heavily in oil, gold, and silver companies. [2008] - Robert T. Kiyosaki

Instead of diversifying, I prefer to focus on a few small assets, notice a trend, and invest with the trend. Since I know a trend can reverse and change direction, I do not blindly invest for the long term. [2008] - Robert T. Kiyosaki

Investing your money in the stock market has historically generated about a 10 percent return in any seven-year period dating back to the 1930s. [2004] - Gary Keller

A small cap stock has a better chance of doubling or tripling faster than many large cap stocks. [2002] - Robert T. Kiyosaki