Retire at Least 4 Years Earlier by Getting Rid of Your Car

Retire at Least 4 Years Earlier by Getting Rid of Your Car

BeginnerLessonRetirementStrategy

Last week I had to have my winter tires changed back to summer tires, and an oil change. At the same time, since I know it’s cheaper to maintain an automobile than to replace it, I asked to have the car inspected to uncover any pressing issues.

Of course, at the end of the day I forked over my credit card to pay a $1,200 bill.

To me, that’s an entire investment in a stock. With a 5% dividend, you’d earn $60 a year with that money, or $5 a month.

I’m sure there’s something you spend $5 a month on; well, that cost could have disappeared from your life.

This obviously got me thinking, “Can I really retire earlier by getting rid of my car? How much earlier can I retire?”

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May Stock Market Review

Weekly Stock Market Review (May 23 – 27)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

Stock Articles

Economy Articles

Remember to subscribe to The Dividend Beginner blog to get e-mail notifications when  I release new blog posts. Part of being a great investor is always staying as up-to-date as possible!  The Dividend Beginner blog will help you with that, so you don’t have to! 

Corus Entertainment

Corus Entertainment: Is The 9.25% Dividend Safe?

Stock Analysis

In the interest of diversifying my dividend income stream, as I did with my last purchase of Exchange Income Corp., Corus Entertainment (TSX: CJR.B) offers my portfolio exposure away from the financials and energy positions I hold.

It’s hard to miss Corus Entertainment’s enticing 9.25% yield when the majority of high-quality stocks offer yields far closer to the 2% to 3% range; less than a third of what CJR.B offers in terms of immediate cash returns on a monthly basis. A 9.25% monthly dividend definitely sounds too good to be true. For this reason, let’s explore the important metrics to determine whether CJR.B’s dividend is safe or in line for a cut.

Historic Payout Ratio

The most important metric when determining the safety or future of a dividend is the dividend payout ratio. How much is the company paying out of earnings, cash flow, or funds from operations? It tends to vary exactly which metric is used to determine payout ratio, though most of the time it’s calculated from earnings. However, in this case, CJR.B calculates the payout ratio from their free cash flow, which is understandable.

I’ve skimmed through a variety of their financial statements and reports and in the majority of them they reiterate “that Corus intends to maintain the existing annualized dividend rate of $1.14 per Class B Share following closing of the Acquisition” (of Shaw Media).

Corus Entertainment Payout Ratio

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4 Steps to Paying Your Bills With Dividends To Achieve Financial Independence

4 Steps to Paying Your Bills With Dividends

BeginnerBudgetingLessonRetirement

The entire point of achieving financial independence through dividend growth investing is to pay off your living expenses through the dividends your investments return to you on a monthly basis.

Let’s look at exactly how we can accomplish this. Let’s go one step further and lay out a plan that will allow us to do so with a high level of motivation and enthusiasm. It’s important to do it this way when achieving financial independence can take more than a decade.

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May Stock Market Review

Weekly Stock Market Review (May 16 – 20)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

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Exchange Income Corp. is a Monthly Dividend Superstar

I Diversified My Income Stream With Exchange Income Corp.

Purchases

On May 11th, I added 75 shares of Exchange Income Corporation (TSE: EIF) to The Dividend Beginner’s portfolio. I purchased the shares at the high price of $32.18, with a trading cost of $6.95 for a total cost basis of $2,420.45. This is one of the largest one-time stock purchases I’ve made to date. I have a firm belief in the future of this company after they released Q1 2016 results and increased their net earnings by 957%.

Portfolio Diversification

My position in EIF.TO accounts for 5.82% of my total portfolio value, and increases my exposure to the Industrials sector to 9.00%, which is a huge improvement over before. As you can see, my diversification definitely still has a long way to go; being skewed so heavily towards financials. Not to mention, I have no positions in Basic Materials, Consumer Staples, Healthcare, or Technology.

Investment Diversification

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Canadian Stock Watch List May 2016

Stock Watch List for May 2016

Watch List

As we watch the market rise and fall, sometimes we see a big drop – the perfect opportunity to push some capital into the market and make some dividend growing investments. However, when this happens, many will watch and become lost in the vast amount of opportunities and potential investments. Which one is the best fit? Which one has the greatest expected dividend growth? These exact queries are the reason it’s so incredibly useful to make or follow a stock watch list every month, so when opportunities present themselves in abundance you know where to put your money.

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May Stock Market Review

Weekly Stock Market Review (May 9 – 13)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

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Alaris Royalty Corp.

Alaris Royalty Corp. Reports 2016 First Quarter Earnings

Earnings

Alaris Royalty Corporation released their 2016 first quarter results after market close on May 10th.

Considering I currently have a $5,000 position in the income generating company, it’s my duty to look through the earnings. I’ve noticed a couple of my fellow Canadian investors have also picked up shares in the corporation and so it’s in all of our best interests to see what the company has been up to for the last quarter.

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Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.