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The merits of investing in top dividend-paying companies are well known—capital gains, regular income, and lower risk. However, investors in ETFs that focus on dividend-paying companies need to be aware that the dividend payouts of ETFs are not as smooth as those of the best individual dividend-paying companies.


For investors, companies that pay regular and growing dividends have performed very well over time when compared to the broad market indices.


A simple dividend strategy (as represented by the S&P 500 Dividend Aristocrats) like selecting stocks with a long history of uninterrupted dividend growth has added 11.7% per year over the past 30 years; this compares to the 10.3% annualized returns for the S&P 500 Index....

Aggressive talk of further interest rate increases by the U.S. Federal Reserve Chairman Jerome Powell contributed to the big drop for stock markets in April. Rising inflation is the main reason that the Fed plans to keep raising rates.


Growth stocks, especially those with only remote prospects of near-term profits, came under considerable pressure....

Rising interest rates mean dividend-paying stocks must increasingly compete for investor interest in fixed-income investments. However, sustainable dividends still offer an attractive and growing income stream for investors.


Meanwhile, dividend-focused ETFs can—but not always—follow strategies that we feel set investors up for maximum long-term gains with the least risk....

Utilities could suffer more than other sectors as interest rates further rise. That’s because they have a lot of debt, and higher rates make it more expensive to raise money and refinance existing debt. As well, their shares, which typically offer high yields, compete with fixed-income instruments for investor interest.


Still, holding a stake in this sector is an important part of a well-balanced portfolio....

MOLSON COORS CANADA INC. remains a hold. The company (Toronto symbols TPX.A $66 and TPX.B $72; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 216.7 million; Market cap: $15.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.7%; TSINetwork Rating: Average; www.molsoncoors.com) is the world’s fifth-largest beer brewer....

Ovintiv continues to benefit from the sharp rise in crude oil and natural gas prices as the economy rebounds from the COVID-19 lockdowns. The company is now using its surging cash flow to pay down debt and reward investors with rising dividends and share buybacks.


OVINTIV INC....

The Bank of Canada recently raised its benchmark interest rate, from 0.5% to 1.0%, in response to rising inflation. It also signalled more hikes are likely in the coming months.


Generally, rising interest rates are bad news for high-yielding utility stocks, such as the three we analyze below....

A: Stella-Jones Inc., $34.20, symbol SJ on Toronto (Shares outstanding: 63.0 million; Market cap: $2.2 billion; www.stella-jones.com), is a manufacturer of pressure-treated wood products....

The outbreak of COVID-19 and a weakening global economy sharply slowed air travel volumes and demand for new planes in both 2020 and 2021. However, the outlook for CAE—a leading provider of flight simulators and pilot-training services—remains bright.

Airlines and their service providers still face challenges from COVID-19 variants and restriction on many international destinations....

Discover the characteristics of the best Canadian real estate investment trust (REIT) to buy, including an example of one we like, as well as one type of REIT to avoid.