Chatter Around the World – 133

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

World Map of Predicted Economic Growth Annually From Now to 2024

World Map of Predicted Economic Growth Annually From Now to 2024

Let’s dive into the links that caught my attention this week.

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Investing in Gold – Alternatives to Buying Bullion

Gold

The current market downturn has me thinking more about safe havens. Earlier this week I shared an overview on safe haven investing across asset classes. For each asset class, there are safe havens but the ultimate safe haven that has stood the test of time is none other than – gold. Holding part of your portfolio/net worth in gold allows your portfolio to weather the storm of a recession/depression/currency collapse etc. But in order to hold gold, one does not have to necessarily buy gold bullion as there are alternatives available to investors. This article discusses some of the options.

Why Gold?

The reason to invest and hold gold is strong. In case of a major crisis, investors always rush to gold and hold the metal to preserve wealth. Previous civilizations and generations have been obsessed over it and current gold market is still huge with central banks buying up as much physical gold as they can. Some investors suggest that its a barbaric metal that does not serve any purpose, but history has proven otherwise.

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Canadian National Railway Dividend Increase

CNR

Canadian National Railway Company (CNR.TO/CNI) announced a 20% increase in its cash dividend. The quarterly cash dividend will increase from C$0.3125 to C$0.375 per share and payable on Mar 31, 2016 to shareholders on record as of Mar 10, 2016.

Including today’s announcement, CN has declared annual increases to its dividend 20 consecutive times, averaging 17 per cent per year, since its initial public offering of shares in 1995. The annual dividend rate goes up from C$1.25 to C$1.50. Yield going forward based on today’s closing stock price is 2.10%.

Canadian National Railway Dividends & Dividend Growth Rates

Canadian National Railway Dividends & Dividend Growth Rates

From the press release statement:

Luc Jobin, CN executive vice-president and chief financial officer, said: “We are pleased to uphold our track record of consistently returning cash to shareholders. This dividend increase is testimony to our confidence in the strong cash flow generation capacity of CN throughout business cycles, and reaffirms our objective of gradually increasing the dividend payout ratio toward 35 per cent.

My portfolio consists of 52 shares of Canadian National Railway, which increases my annual dividends from C$65.00 to C$78.00, an increase of C$13.

Safe Haven Investing

Safe Haven Investing

During a storm, we seek shelter. Things are no different with our investments – when there is a financial storm brewing, investors seek shelter in assets, what are commonly called:  safe haven investing. Safe haven investments are investments that are expected to retain or increase its value during times of market turbulence. This article takes a look at some of the safe havens in each asset class.

Safe Haven Investing

Before we dive into the need for safe haven investing, a couple of things need to be stated. It is important to keep in mind that these safe haven investments are temporal: what is considered a safe haven at one time may not necessarily be true during a different time period. This is because each crisis is different; and the same investment may not qualify (although it might) as a safe haven during a financial crisis and then later during a war. What qualifies as a safe haven? In times of instability, the investments as stated earlier – need to retain value at the very least, if not increase in value. There are safe havens in each asset class although investors tend to flock to one or two during times of instability.

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Chatter Around the World – 132

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Let’s dive into the links that caught my attention this week.

Continue reading