We see the preferred share shakeout as a great buying opportunity, particularly among rate-reset preferreds -- especially those that have a rate reset of at least two years into the future -- as their plunge in prices has made their yields attractive and there is significant potential for capital gains if and when Canadian interest rates do begin to rise.
Dividend paying stocks can offer it all -- high current income and capital appreciation potential -- but only as long as you pick the right ones. Research has shown that dividends have proven to be the primary source of real return for investors, making up over 80 percent of stock returns net of inflation. The real strategy in winning with dividend stocks is simply by not losing -- avoiding the low quality companies.
I love my friends. Most are kind, two are funny. Three are generous, and another is shrewd. But my BFF? That friend would be my dividends. My proposition to you is that you start to invest. And high-quality dividend stocks with a track record of increasing their dividend payouts are a fantastic place to start.