Dividend Investing: Is it Right for You?

Questions Covered

1. For those Canadians new to this type of investing style, can you explain what dividend investing is?
2. When should someone consider doing dividend investing? (i.e. Is there a particular life stage when it’s most appropriate?)
3. Is there a type of person that is most suited for this type of investing? (ex. time commitment, personality, etc.)
4. What are the pros and cons of this investing style vs something like index investing, mutual fund investing, or stock picking for growth?
5. The idea of investing to “live off the dividends” sounds very tempting to Canadians. How realistic is this? What is actually needed to pull this off?
6. What are some of the top mistakes Canadians make when investing in Dividends? (ex. Chasing yield)
7. At 5i one of the things I noticed you do, is that you have sections of the site dedicated specifically for dividend investors, and I noticed that in there you recommend primarily Canadian companies. Can you explain why that is? (i.e. preferential tax treatment, anything else?)
8. Peter said (in a previous interview) that at 5i you like companies that have a growing dividend. If somebody is researching a company themselves, how can they check if a company is growing its dividend?
9. What are some good resources for somebody that is considering, or wants to learn how to do dividend investing?
10. I know you guys offer a lot of help on this to 5i subscribers so feel free to talk about some of the resources that you have available for investors too.

Links and Resources

• You can get a free 1 month trial of 5i Research by going to www.BuildWealthCanada.ca/trial. As a "thank you" for trying it out and checking out their research, you'll also receive a free 1 year subscription to Canadian MoneySaver Magazine (Canada's largest personal finance and investing magazine).
• Top Tools and Resources for Financial Independence (for Canadians): Sign up anywhere on www.BuildWealthCanada.ca for a free guide on all the top tools and sites that I’ve personally used to help us achieve financial independence in our early 30s. They’re also what we use now to optimize and manage our finances, and ensure that we’re paying the lowest fees while getting solid returns on our investments.
• Kornel's investing course with free sample lessons at www.BuildWealthCanada.ca/invest