RE:RE:@@@ JUST DO IT @@@johnnywick wrote: If you holding some garbage stocks paying you a high yield like 5% or 8%
Is time to ged rid of it... move your money into what i'm buying
Dollarama
Canopy Growth
Valeant Pharma
stocks that pays 8% yield usually goes down the gutter... same with 5%
1% doesn't even keep up with inflation, you might as well spend the money now because it wont ever have that buying power again.
I agree with ditching the 8% dividend payers (except one. Brookfield Real Estate [BRE.TO] has consistently paid dividends and its about 8% and it seems pretty healthy. Their payout is less than 60% of earnings. Obviously do your own DD) but 5% is still a decent stock. I own ETFs that pay ~5% that have been relatively consistent on their price.
It ultimately comes down to what you're looking for though. If you could look back at Dollaramas dividend payments. If they consistently raise their dividends, then the 1% I get if I buy now might end up at 2.5% 3 years from now. Then its worth it as a long term investment, That's where companies like Realty Income Corp [O] do well.