Taking a look at the current list, there are still many good companies offering a yield over 4% as noted in the green highlights. I get a lot of people asking me which company they should buy first. That’s not an easy question to answer because it’s dependent on the person. I can only recommend looking at my list, then researching each company yourself for your own due diligence. Find out what their cash flow is like, look at their dividend growth history and buy when the price is right. I usually look for a yield of at least 4%. Anything lower then that will take too long to grow to a decent percentage in the future, but there are some that say I am wrong and that solid companies can be bought at any price. That’s why it’s important for individual investors to find out what works for you and your level of risk for investing.
Not every company will be around forever. Who knows, when 2012 rolls around and human beings are able to communicate through telepathy, will the telecom companies still be around? I highly doubt it, although my guess is that tinfoil hat stocks will go through the roof. No investment strategy is perfect and I guarantee you will have to evolve your investment strategy to evolve with the ever changing world around us. My advice is to look at the Canadian banks. There are rumors that they are increasing dividends next year and I’m looking to pick a few more up before they do. Insurance companies always seem to make money, as well as utility companies. Everyone needs to eat, so grocery stores should always see profits well.
My next post this week will expand more on this topic of investing for the future. I have more time to focus on my blog now that my condo is listed and we have most of the packing done. Hope my readers will forgive me for my lack of updates. Enjoy the rest of the weekend.