Tag Archives: cashflow

And in Reply…

My last post about knowing when you’re able to retire based on your dividend income elicited some good questions and counter-points from Robb at Boomer and Echo. The answers I have would have involved a rather long response in the comment section, so I decided to reply in a new post. For the record, here is what Robb said:

I used to think this way, how­ever I don’t think it’s real­is­tic to live off div­i­dends and never touch your cap­i­tal in retire­ment. First of all, any RRSP sav­ings will even­tu­ally be con­verted into an RRIF and face stiff with­drawal rates. Sec­ond, what if you want (or need) excess cap­i­tal in one year to pay for a car, new roof, large vaca­tion, etc.? You’d prob­a­bly look to sell off some stock to access the cap­i­tal. Finally, there’s the poten­tial to work longer than needed in order to reach a tar­get div­i­dend income stream. It’d take a mil­lion dol­lars in cap­i­tal to spin off $35,000 to $40,000 in div­i­dends. Why wouldn’t you want to tap into that mil­lion dollars?

In response, I say this: Continue reading And in Reply…

Inertia Can Be A Terrible Thing

An object at rest will remain at rest unless acted on by an unbalanced force. Damned if Newton wasn't right.
Damned if Newton wasn’t right.

Those of you who read this blog regularly will know that I’ve been less than diligent with my posts recently. Baring your soul on the Internet to people you’ve never actually met seems to be the “done” thing these days, so I’ve decided to pull back the curtain and share where I am these days, in terms of my financial worries. Being able to be open about these things (and a possible upcoming career change) is one of the benefits of blogging anonymously, so here we go:

Continue reading Inertia Can Be A Terrible Thing

Dividend Yield

The yield’s the thing

Searnng for Dividend Yield
In this case, yield is a good thing.

When dividend investors look to buy stock, it’s (almost) all about the yield. By determining the dividend yield of a stock, you can see what that stock is going to pay you if you buy it. The dividend yield alone is not enough information to decide whether or not you should buy a stock, but it is one of the major factors, and should be one of the first ways you use to screen potential stock investments. Unlike the dividend amount (or dividend payment, or just “dividend”) the dividend yield is stated on a annualized basis, which permits apples-to-apples comparisons, regardless of whether dividends are paid monthly, quarterly, or even annually. Here is how to calculate a stock’s yield.

Continue reading Dividend Yield