What is Pat’s commentary for the week of May 31, 2016

Article Excerpt

As an Inner Circle member, you’re no doubt familiar with our three-part investment advice. One of those key points is to invest mainly in well-established dividend-paying stocks. (The other two parts are to downplay stocks in the broker/media limelight and spread your money across most if not all the five main economic sectors: Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities.) With today’s low interest rates, investors continue to pay a lot of attention to dividend yields. In fact, dividends can now contribute up to a third of your long-term investment returns. That’s even before the tax savings associated with the Canadian dividend tax credit. Dividends are far more reliable than capital gains. A stock that pays a $1 dividend this year will probably do the same next year. In addition, top dividend-paying stocks like to ratchet those payments upward—hold them steady in a bad year, and raise them in a good one. That also gives you a hedge against…