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The Dividend Trap: How Seeking Stability Might Limit Your Returns

The Dividend Trap: How Seeking Stability Might Limit Your Returns

FromThe Empowered Investor


The Dividend Trap: How Seeking Stability Might Limit Your Returns

FromThe Empowered Investor

ratings:
Length:
30 minutes
Released:
Nov 23, 2023
Format:
Podcast episode

Description

In this episode, we dissect the intricate world of dividend investing, breaking down common assumptions and exploring its role within a well-rounded investment strategy. We'll delve into the impact of dividend reinvestment on total returns, the tax advantages of controlling distributions, and the importance of not relying solely on dividend paying stocks for diversification. Our discussion will shed light on the psychological allure of dividends during market volatility and why a broader perspective that includes capital appreciation is crucial for wealth growth.Join Lawrence and Keith as they navigate the complexities of dividends, offering insights that challenge the status quo and empower you as an investor.Key Topics:Understanding the pros and cons of prioritizing dividend-paying stocks (1:05)Examining the impact of dividend distribution on stock market prices (5:33)Comparing tax treatments for dividend income versus capital gains (10:24)Debunking the myth that all stocks offer similar appreciation rates (11:11)Clarifying that dividends are an integral component of total investment returns (13:16)The long-term effects of not reinvesting dividends on investment growth (17:10)Addressing the misconception that dividend payouts are always reliable (19:54)Analyzing how dividend-centric ETFs fare when interest rates rise (23:33)The pitfalls of dividend investing strategies, including tax inefficiencies (25:29)And much more!Thank you for listening!Mentioned in this Episode:Tulett, Matthews & AssociatesBe sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112. Follow Tulett, Matthews & Associates on social media on LinkedIn, Facebook, and more! Follow The Empowered Investor on Facebook, LinkedIn, and Instagram
Released:
Nov 23, 2023
Format:
Podcast episode

Titles in the series (91)

If you've ever felt overwhelmed by the sheer volume of choices and voices in the Canadian financial services industry, The Empowered Investor Podcast can transform your investment experience and increase your odds of becoming financially secure – forever. With his simple, straightforward approach, host Keith Matthews cuts through the noise to help you make better decisions and discover the best investment and planning strategies for you and your family. As a portfolio manager and advisor at Tulett, Matthews & Associates, Keith has spent twenty-five years helping investors achieve their financial goals using the same planning and portfolio principles discussed in The Empowered Investor podcast. Always an advocate for investors, Keith has spoken at global conferences, been quoted in many Canadian newspapers and magazines, and recently published the new and revised 4th edition of his book, The Empowered Investor. To learn more about Keith’s client advisory services or to request a complementary copy of the latest edition of The Empowered Investor, please visit www.tma-invest.com