Global Dividend Income
Dividends have a nice sound even if many people don’t understand what they are or how you get them. Like the benefits of eating broccoli, understanding isn’t necessary but partaking is vital. As we eat many kinds of vegetables, we also seek dividends from many sectors and countries, worldwide.
Let’s say you inherited a bank stock. Imagine it was worth $100 and paid $1 in quarterly dividend. That’s a 4% dividend yield. Before paying the dividend, this bank was running its business, creating revenues, paying expenses, investing profits in future growth, and paying the remaining dividends to owners. Owning the bank pays dividends just like eating broccoli nourishes you with vitamin C and K, folate, potassium, and fiber.
But we hope you wouldn’t just own one bank, one industry, or one country. Here’s why. The stock you owned dropped 65% in 2008-2009. Good thing if it kept paying the same dividend. Too bad though, if you were miserable owning a stock that stumbled for a year or more.
To reduce the severe downswings – and even to broaden your dividend income – you’d want dividends not just from banks, but also industrials, energy, utilities, and more. Canadian dividends are great because a lot of our spending is in Canada. Global Dividends show even more resilience because they represent 60% of the world’s economy.
Dividends are like broccoli or carrots – definitely good for you. It’s like a golfer who always tees off with a 25 meter advantage. For a family it would be like a discount on their mortgage or $1000 toward their next trip. For the traveler it’s like a free upgrade to first class. For the retired it’s confidence that there’s always money coming in: today, tomorrow, next year and beyond.
Canadian and global dividends combine to stabilize income and growth, now and for the future. When this is joined to global infrastructure and real estate (see Life Income Mandates) we’ve built a pipeline that pays high and growing income at a fraction of stock market risk.