Since we added the Canadian Dividend Aristocrat Portfolio it has gained over 23% since we first launched it two and ½ month ago. The yield is just a tad under 7% at 6.95%. With our no cost quarterly re-balancing, we just added 2 high yielding banks CIBC, TD Bank, and removed 2 other banks Bank of Montreal and Nova Scotia banks as part of our normal re-balancing. You can see that TD or Toronto Dominion Bank not only has a high yield but outperformed Bank of Montreal BMO over a 5 year period. Both banks have excellent quality in a diversified portfolio.
The Canadian Dividend Aristocrat has significantly outperformed their counterparts in the US, including the S&P Dividend Aristocrats and the Dogs of the Dow. You must realize this performances is in a very short time period and that even diversified portfolios can and do have significant price movements in both directions.
Over a 10 year period where the Canadian Dividend Aristocrat outperform their peers significantly .
It is a nice feeling owning a company that has a focus on raising the dividend, even under these very challenged time periods for Canada and the entire world. This is very good way, to own companies who value their shareholders with a long term focus of raising their dividend.
With almost a 7% dividend rate today, and with each company raising their dividend each year and Durig quarterly re-balancing, the dividend yield over time should continue to be superior to most dividend investments. We know Canadian Divided Dogs and Canadian Dividend Aristocrats are establishing a record of the performance superior to most investments including the S&P Dividend Aristocrats and Dogs of the Dows Portfolios. This performance backdrop has become valuable during the COVID 19 pandemic and we believe it is proving to be a very solid approach for those seeking income with growth in very good and very bad times.
We believe this is an outstanding way to increase your investment diversification in mostly high quality income paying Canadian companies. We also see that the Canadian economy is in a position to rebound as the global is starting to expand and the Canadian raw materials could achieve both a higher price and increase volumes.
Let’s put how high over 6.95 yield into perspective:
The 10 year treasury current yield is .70%
The 5 year treasury Current yield is .88%
The Best 5 year CIT CD is 1.60%
Durig’s Dividend Aristocrats is 4.88%
Durig’s Candian Aristocats is 7.00%
With the Canadian Dividend Aristocrats you receive a superior dividend income for taking Canadian quality companies risk and rewards, plus you receive over 6 more than the 10 year treasury. This is an incredibly high premium for a Canadian growing dividend portfolio.
Canadian Dividend Aristocrats of the S&P 500
Annual Cost: 0.50% or 1/8 of a percent per quarter.
Average Dividend Yield of About: 6.95%
Minimum Investment: $25,000
Minimum Holding Period: None
Other Durig Portfolios
We offer our successful investment strategies of Fixed Income 2 (FX2) Portfolio, Dividend Aristocrats, the Income Aristocrats Portfolio along with are many Dogs Portfolios to other Charles Schwab Registered Investment Advisors through segregated accounts.