DIVIDENDS: THE BEST FORM OF PASSIVE INCOME IN CANADA 2022 | Do You REALLY Understand Dividends?

Today I'll talk about dividends and really help you understand what a dividend is!

Dividend Investing is the best way to achieve passive income in Canada and far too many people don't truly know what a dividend is. Yes, it's a passive income stream that you receive but today I want to dive deeper and explain what a dividend really is - a portion of a company's profit shared with shareholders.

#stockmarket #canada #theinvestingacademy

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Timestamps:
Intro (0:00)
What Is a Dividend? (1:14)
Taking A Deeper Look (2:25)
My Takeaway From Dividends (11:50)
Outro (16:30)

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Disclaimer: The views and opinions shared on this channel are for informational and educational purposes only. Although previously licensed, the contributors are no longer industry participants and are not licensed to provide financial advice. They strive to provide you with educational information in an entertaining manner. Always do your own research and due diligence before investing. Generally speaking, you should consult a licensed investment professional before investing.

[MegsCarpentry-lovedogs]

Hi Brandon and Marc, super important idea might be to also show that not all dividends are the same. Some dividends are 100% eligible for the dividend tax credit, some are partly and have capital gain and or Return of Capital. Some dividends are not eligible for the dividend tax credit and have a Return of Capital (ROC) part to them. ROC part to a dividend is NOT ideal for an investor. Would you please consider explaining dividends in even more depth including ROC and what ROC means? Because ROC means you are not getting a piece of the profits but something else, correct? Thanks for this clear and visual presentation. It was needed. 💡👍🇨🇦😀

[pwong]

I enroll all dividends earned in the DRIP with Canadian equities but the bank does not allow DRIP with US stocks. Good info with this video.

[BURGATRON]

Glad I found this channel. It made me realize Canada has so many good dividend paying companies (TD, manulife, Fortis, QSR, Telus, etc). Thanks so much!

[RyanThomasWoods]

WOW! Needed this breakdown of statements and would love a video breaking down “good payout ratios for different sectors… banks, utilities, telecomms, etc”

[thruthelens]

Do you have a video showing the best dividend stocks to buy in Canada for 2021 or 2022?

[papytofu]

Brandon: I have a baby guys, I won't be posting as much for a few days
Also Brandon: I'm posting more frequently than ever before.

Thanks for the great content, your dedication is super appreciated! Make sure you take some time for yourself too!

[proteus]

I find that many people focus too heavily on the yield and/or the frequency of the dividends paid out while deciding what to buy, and over look the red flags about a stock or they don't buy a stock because the yield is too low compared to other dividend stocks. I just hope people are aware of the dividend yield traps out there. I know I bought some when I started investing.

[LE-BILLION]

Hi Brandon just wanted to know if are you going to be making a tutorial video about passive?

[BonezJones]

You’re the GOAT! Merci from Montreal, QC!

[isaiahc]

Hey Brandon would love to see a video on stocks that provide great dividends but also have great opportunity for growth, thanks and love the content

[roberttaylor]

Nice clear explanation!
I want to thank your channel for a few good stock ideas over the last year. PPL as a monthly dividend and CHB as a fixed income option come to mind. I think I own CP from a review of yours as well. I get 200-300 a month in dividends or disbursements a month, all of which gets put into more stocks, every few months, partially due to your videos. It’s not a lot, but it’s like getting a day or two of net wages a month, and I can see the amounts going up a bit every quarter.

[dividean]

Great video Brandon. It would be interesting to do a video discussing the different payout ratios like you suggested. I get confused with it all especially pipeline ones like Enbridge where they base it on the Discounted cash flow calculation. Thanks

[jfrunnerCanada]

Dividend stocks are king 👑!
4.3% average for me, always growing income! I can sleep at night too 😴
100% Canadian stocks : 6 canadian banks, Manulife, Power, Telus, BCE, Fortis, Canadian Utilities, Algonquin…
Great video, as always!
😃🤓

[Mrdest]

From Investopedia:

"A stock trades ex-dividend on and after the ex-dividend date (ex-date). If a trader purchases a stock on its ex-dividend date or after, they will not receive the next dividend payment. Since buyers aren't entitled to the next dividend payment on the ex-date, the stock will be adjusted lower by the amount of dividend by the exchange. [...] On average, a stock can be expected to drop by a little less than the dividend amount. Given that stock prices move on a daily basis, the fluctuation caused by small dividends may be difficult to detect. The effect on stocks from larger dividend payments can be easier to observe."

Your stock price drops by around the amount of the dividend paid some weeks before the dividend is paid out. It's important to distinguish between income and gains. A dividend is not a gain on the day it is paid out, it compensates a loss a few weeks earlier on the ex-dividend date. Dividends, especially tax advantaged ones, are good returns, but they're not free money "on top" of your share price gains.

[BusinessTipsWithYulianna]

My advice to new investors - buy good companies stocks, companies you believe in and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at the best entertaining but completely useless.

[NorthPoleInvesting]

Brandon I want to thank your for this content. I am 18 and it was because of your channel and others like Andrei Jikh, Jeremy, etc that I discovered that I love the stock market. Especially dividends. I can’t thank you enough and you really have helped me discover my passion. I am now enrolled in business administration and hope to become a financial advisor or something similar in the future. Keep up the great content!

[nevillejames]

Great video. So detailed and easy to follow. Keep up the great work.

[Vincemdlix]

Appreciate videos like this Brandon! 🔥🙌

[rudykatwaroo]

Thank you for teaching us. I would like to see that explanation of free cash flow generation please.

[hughcourchesne]

Great topic. Which are the best metrics are best for div investors??