Like High Dividend Stocks? Check This Out

Many investors are attracted to high dividend-yielding companies. Assuming the company’s dividend is safe, it’s a good way to add regular income to your portfolio and possibly reinvest it as you see fit. Here are the top dividend-yielding companies for each major sector on the S&P/TSX Composite Index, as well as the sector’s average yield. But investors would be wise to pay attention to the other risks these investments have. Read on to find out more!

S&P/TSX Dividend Aristocrats Index

In Part 2 of our analysis of Canadian Dividend Index ETF’s, we take a look at the S&P/TSX Dividend Aristocrats Index and compare it with the S&P/TSX High Dividend Index. While both Indexes sound attractive to dividend investors, their methodologies are extremely different. We’ll compare and contrast the two, and take a look at their medium and long-term historical risk and return metrics to pick the winner.

Canadian High Dividend Index

Dividend investors believe that investing based on yields will deliver superior performance than just investing in a broad, market-weighted basket of stocks. But does this strategy make sense? Today I will begin part one of a two part series on dividend investing by looking at the popular S&P/TSX Composite High Dividend Index. I’ll give an overview of its methodology and take a look at its historical risk and return metrics and contrast them with its natural competitors: the S&P/TSX Composite Index and the S&P/TSX Large Cap Index. After seeing the facts, you can be the judge!