Dividend Growth Split Corp T.DGS

Next week CPI and FED rate decision...

[flamingogold]

will determine whether DGS makes the distribution cut. If the CPI# continues to drop and the FED pauses, it could be a photo finish at the distribution line.

[mouserman]

From the Financial Post... gotta say i agree. The Financial Post reports in its Friday edition that in a span of a couple of months, talk about Canada's economy has gone from recession worries and interest rate cuts to things being too hot to handle. The Post's guest columnist Theo Argitis writes that last week, Statistics Canada released GDP data that showed a much more resilient economy

[flamingogold]

All these bearish experts have been dead wrong so far. But, even a stopped clock is right twice a day. Eventually there will be a recession, just not this year. The turning point will be once we get wage decline and steady unemployment increases. I think this fiscal tightening will finally hit the wall in 2024 and maybe then we get a drop in rates.

[mouserman]

And you have been constantly pushing DGS saying it will bounce back soon, for a few months now, also dead wrong.... household debt in Canada is at record levels, as are the number of Canadians missing mortgage payments ,credit card  debt payments, lines of credit etc....  jacking it even just a quarter of a % has a huge effect, when  some people cant quite survive as it was...

[scarface9]

Just wait until the mortgages reset. It'll cost an average of $1300/mnth EXTRA or $15,000/year. The whole housing market will implode with everyone scrambling to sell. The ripple effects will hit everything. 

[flamingogold]

Housing is definitely a big concern here. But, Trudeau and Freeland are changing the rules to make sure the sector doesn't implode as it contributes the most to our GDP. In her last budget she quietly gave banks special permission to extend the amortizations temporarily to 40 years and more (some reported at even 80 years) since the interest due has exploded higher on those who took out cheap

[scarface9]

You're a lot more optimistic than me. I think what's coming in the next couple of years will make the great depression look like the good ole days.

[flamingogold]

The global economic halt that occurred in 2020 was the perfect catalyst to send us into a depresssion. Lessons learned from the poor fiscal policy of the 1930's, which prolonged the contraction at that time, prevented a return to that scenario during covid. And, with rates now back to 2000 era levels again it provides the ammunition to stave off a depression. A contraction of 10% and

[flamingogold]

Well back in early April I did say DGS would climb back over $6 and meet the threshold for paying and it did. Not saying I'm perfect but I've done ok holding DGS since covid, now with an average in the $1 range. I only need it to pay once and my annual return is already 6% all in a TFSA too. Of course, it will do better than that.   The economy in the last year has had to

[flamingogold]

Having said that, since it's impossible to time a market. I do hold a good chunk of preferreds (paying about 8%) and another 20% in daily money markets (paying over 4%) and ready for deployment if we do rollover back to S&P 3600 again or lower.