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 +  * CNR’s dividend at the turn of the century was 12¢. In January of 2024 CN’s dividend was $3.38. That’s 14.9% a year. Dividends are a big deal. As dividends go, so does the stocks’s price. CNR’s price went from $7 to $78. Our income doubles every decade of so. So does our capital. 
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 {{why_dg_oct_2016.pdf|}} Dividend Growth Investing  {{why_dg_oct_2016.pdf|}} Dividend Growth Investing 
  
   * How can it be? How can a dividend increase affect the price of a stock? Especially if it's only a cent or two. It's unbelievably simple: an investment that produces more income becomes more valuable. Metro's dividend in 2019, for instance, increased from 18¢ to 20¢. That's up 11%. Do you believe that MRU's price will rise by 11% also? It will. The proof, developed over decades, is inside. Another: BMO's dividend went from $3.78 to $4 in 2019: up ♠♠7.3%. As a result, BMO's price will rise too. Year after year wealth/capital builds, driven by the growing income.   * How can it be? How can a dividend increase affect the price of a stock? Especially if it's only a cent or two. It's unbelievably simple: an investment that produces more income becomes more valuable. Metro's dividend in 2019, for instance, increased from 18¢ to 20¢. That's up 11%. Do you believe that MRU's price will rise by 11% also? It will. The proof, developed over decades, is inside. Another: BMO's dividend went from $3.78 to $4 in 2019: up ♠♠7.3%. As a result, BMO's price will rise too. Year after year wealth/capital builds, driven by the growing income.
  
-January 2023- **Ask Your Adviser** - A Rob Carrick’s column in early January 2023 had the headline “Five things to talk with your investment adviser about after the sad returns of 2022”. I’ve been thinking about what Rob said. Rob is talking price returns. Most investors do. Over time, however, return on equities will track the sum of yield plus dividend growth. In the last decade, the CAGR (compound annual growth rate) of the 28 stocks I follow has been 8.79%. This is what really matters. ♦ My questions to ask your adviser, because of this, are quite different. First of all, I would not, and do not have an advisor. Advisors don’t have the answers. They are paid to peddle product and have no skin in your game. Most are not fiduciaries. An advisor should tell you that return has two parts: the investment return and the speculative return. The investment return, yield plus growth) is fairly stable, predictive, in fact. The speculative return fluctuates with human emotion. It is the speculative return that is falling. ♣  We could ask the adviser why they did not call in 2021 when the market was very high? Actually, I do not invest in the market. The market is a giant distraction for the business of investing. In the last major bear market, starting in 1964, the Dow was 874: in 1975 the Dow was 875. I do not buy index funds.+January 2023- **Ask Your Adviser** - A Rob Carrick’s column in early January 2023 had the headline “Five things to talk with your investment adviser about after the sad returns of 2022”. I’ve been thinking about what Rob said. Is a one year period enough to judge returns? Certainly not. Although total return was mentioned, Rob is mainly talking price returns. Most investors do. Over time, however, return on equities will track the sum of yield plus dividend growth. In the last decade, the CAGR (compound annual growth rate) of the 28 stocks I follow has been 8.79%. This is what really matters. ♦ My questions to ask your adviser, because of this, are quite different. First of all, I would not, and do not have an advisor. Advisors don’t have the answers. They are paid to peddle product and have no skin in your game. Most are not fiduciaries. An advisor should tell you that return has two parts: the investment return and the speculative return. The investment return, yield plus growth) is fairly stable, predictive, in fact. The speculative return fluctuates with human emotion. It is the speculative return that is falling. ♣  We could ask the adviser why they did not call in 2021 when the market was very high? Actually, I do not invest in the market. The market is a giant distraction for the business of investing. In the last major bear market, starting in 1964, the Dow was 874: in 1981;_— the Dow was 875. I do not buy index funds.
 ♦ Did the advisor inform you inflation was about to increase and suggest you cut back on bonds (fixed income) and move more into equity with its growing income. A growing income makes a company more valuable and drives up its price. Actually, returns from equities, over time, make stocks safer. Safer than bonds, in fact. ♦ My retirement __income__ doubles every decade, on average: This means my capital will double also. ♠ In my view, advisor’s biggest error is not apprehending yield growth. As a result, an advisor does not know how to protect a portfolio. They are infected by modern portfolio theory. It’s just a theory and it’s wrong. Return, for instance, is not really related to risk. Return is more in the price you pay. Return, is the long run, tracks the sum of your initial yield and dividend growth. Price gains are driven by this increasing cash flow. Never buy a stock without knowing its ten year record of year-over-year earnings and dividends. The Connolly Report 2022 summary of dividend growth, year-by-year, over the last decade is inside this site. And the summaries go back decades, each overlapping each other. This is the real way to measure your return, your portfolio’s progesss. ♦ Did the advisor inform you inflation was about to increase and suggest you cut back on bonds (fixed income) and move more into equity with its growing income. A growing income makes a company more valuable and drives up its price. Actually, returns from equities, over time, make stocks safer. Safer than bonds, in fact. ♦ My retirement __income__ doubles every decade, on average: This means my capital will double also. ♠ In my view, advisor’s biggest error is not apprehending yield growth. As a result, an advisor does not know how to protect a portfolio. They are infected by modern portfolio theory. It’s just a theory and it’s wrong. Return, for instance, is not really related to risk. Return is more in the price you pay. Return, is the long run, tracks the sum of your initial yield and dividend growth. Price gains are driven by this increasing cash flow. Never buy a stock without knowing its ten year record of year-over-year earnings and dividends. The Connolly Report 2022 summary of dividend growth, year-by-year, over the last decade is inside this site. And the summaries go back decades, each overlapping each other. This is the real way to measure your return, your portfolio’s progesss.
  
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 **January 2021 blog** inside this site (five pages): 20 year, year-by-year, dividend data which is updated for splits; you can take $7,000 per year from a $100,000 portfolio; our updated Streaker (at least decade long dividend growth record) List; my own 2020 RRIF withdrawal was 80% dividends (we eat less capital). **January 2021 blog** inside this site (five pages): 20 year, year-by-year, dividend data which is updated for splits; you can take $7,000 per year from a $100,000 portfolio; our updated Streaker (at least decade long dividend growth record) List; my own 2020 RRIF withdrawal was 80% dividends (we eat less capital).
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 +“Facing uncertainty, investors opt for security and attractive yields.” was a headline I saw in Investment Executive the other day. I smiled. I did not read the item. Is it not nice that we (growing income investors) do not need to worry about these matters? Our yields from good companies bought years ago are more than attractive now and these yields are still growing. This provide security: a stock providing an increasing cash flow become more valuable regardless of what the market is doing.
  
   * **Target date funds** bungle* up your retirement finances. How? Just as your equities become safer, before retirement via the build up of intrinsic value, target date funds automatically sell your stocks and buy more bonds. Just say no to target date funds. "As an investors time horizon lengthens", Warren Buffett says, "equities become progressively less risky than bonds." (2018 Letter, page 6) or this by Mr Buffett on February 27, 2021 "bonds are not the place to be these days" Tragically, more employers are defaulting to target date funds for pension plans. Absolute stupidity! And when bonds are in a fund, they lose their guarantee of your money back. ♣ I do not own bonds, never did, never will. Why not? The dividend on one stock in our portfolio was 32¢ when I retired in 1996. Now that dividend is $3.60 a share...up 10% a year. Why would I want to shift to fixed income? * bungle is informal for: mis-manage, work badly, damage or malfunction   * **Target date funds** bungle* up your retirement finances. How? Just as your equities become safer, before retirement via the build up of intrinsic value, target date funds automatically sell your stocks and buy more bonds. Just say no to target date funds. "As an investors time horizon lengthens", Warren Buffett says, "equities become progressively less risky than bonds." (2018 Letter, page 6) or this by Mr Buffett on February 27, 2021 "bonds are not the place to be these days" Tragically, more employers are defaulting to target date funds for pension plans. Absolute stupidity! And when bonds are in a fund, they lose their guarantee of your money back. ♣ I do not own bonds, never did, never will. Why not? The dividend on one stock in our portfolio was 32¢ when I retired in 1996. Now that dividend is $3.60 a share...up 10% a year. Why would I want to shift to fixed income? * bungle is informal for: mis-manage, work badly, damage or malfunction
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 http://www.theglobeandmail.com/globe-investor/investment-ideas/retiree-prefers-blue-chip-dividend-stocks-over-bonds-and-gics/article24348328/ http://www.theglobeandmail.com/globe-investor/investment-ideas/retiree-prefers-blue-chip-dividend-stocks-over-bonds-and-gics/article24348328/
  
-Martin Mittelstaedt's June 15 2012 column in the Report on Business discussed the cost of a dollar's worth of dividends. "Behind rising dividend yields, a hidden warning for [the] economy". +  * 
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-http://www.theglobeandmail.com/globe-investor/investment-ideas/blue-chip-yields-flashing-red/article4264857/ +
  
 Most investors do not know, let alone believe, that as the dividend rises the price of the stock will also rise. Think. If a company is throwing off more cash each year (dividends), it's more valuable. Inside this site I prove this in many ways. Here is just one example from Burton Crane's 1959 book (The Sopisticated Investor, page 13) If an investor had put $10,000 into each of the various 101 NYSE stocks in 1913, by 1953 the dividend received would have been $10,140,258. What had the price of the stock grown to? $10,141,731. As the dividends grow, so does the price of the shares! Most investors do not know, let alone believe, that as the dividend rises the price of the stock will also rise. Think. If a company is throwing off more cash each year (dividends), it's more valuable. Inside this site I prove this in many ways. Here is just one example from Burton Crane's 1959 book (The Sopisticated Investor, page 13) If an investor had put $10,000 into each of the various 101 NYSE stocks in 1913, by 1953 the dividend received would have been $10,140,258. What had the price of the stock grown to? $10,141,731. As the dividends grow, so does the price of the shares!
  
   * ETFs allow so-called 'wealth managers', who know nothing about proper investing, to build a portfolio with a click or two. Ludicrous! I hold individual companies with a long record of increasing dividends. ♣ Here's another reason I never buy an ETF: AIMCo. It seems one of Alberta's pension traders lost some $2.1 billion in trades linked to volatility. AIMCo executives have been fired. Money manages toe the line. Portfolios are all too similar. If the managers don't conform and lose, they're out. We, as a result, with individual portfolios can win by selecting a few the best dividend growth companies and not adding scores of poor quality stocks.   * ETFs allow so-called 'wealth managers', who know nothing about proper investing, to build a portfolio with a click or two. Ludicrous! I hold individual companies with a long record of increasing dividends. ♣ Here's another reason I never buy an ETF: AIMCo. It seems one of Alberta's pension traders lost some $2.1 billion in trades linked to volatility. AIMCo executives have been fired. Money manages toe the line. Portfolios are all too similar. If the managers don't conform and lose, they're out. We, as a result, with individual portfolios can win by selecting a few the best dividend growth companies and not adding scores of poor quality stocks.
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 Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks: Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks:
 http://seekingalpha.com/article/271326-9-real-world-reasons-to-own-dividend-growth-stocks?source=from_friend  http://seekingalpha.com/article/271326-9-real-world-reasons-to-own-dividend-growth-stocks?source=from_friend 
  
-  * [[Fourth Quarter 2017]] Rob Carrick on dividend growth boosting a stocks's price. 
-  * [[First Quarter 2016]] Connolly Report since 1981...thirty five years 
  
  
-  * [[Fourth Quarter 2015]] Why dividend growth investors do better. 
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-  * [[First Quarter 2015]] - "[Bonds] are not intrinsically safe." James Grant 
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-  * [[Fourth Quarter 2014]] - You must construct an individual dividend growth portfolio 
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-  * [[Third Quarter 2014]] Link to a retirement investing column in The Economist 
-http://www.economist.com/news/finance-and-economics/21606894-many-retired-people-dont-have-proper-pensions-any-more-financial-services 
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-  * [[First Quarter 2014]] - the essence of dividend growth investing 
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-  * [[Third Quarter 2013]]  What do dividend growth investors do that is different? 
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-  * [[Second Quarter 2013]] - PBS Frontline - The Retirement Gamble - Dump your funds! 
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-  * [[First Quarter 2013]] - dividends provide most of the return 
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-  * [[Fourth Quarter 2012]] - a growing income, up 9.6% in 2012 
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-  * [[First Quarter 2012]] - //Probable Outcomes// 
-  * [[Thoughts from 2011, '12 and '13]] 
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-  * [[Third Quarter 2011]] - observe comment titles below 
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-  * [[DGDPG2013]] - An example of how dividend growth drives price growth... 
  
-  * [[Falling Market]] - some thoughts in June 2012+——— 
  
    * Living from dividends in retirement [[WSJ_May10]]    * Living from dividends in retirement [[WSJ_May10]]

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