Canadian Stocks to DRIP

Canadian Stocks to DRIP

Recently, while discussing dividend investing with a friend, the topic of DRIP (dividend reinvestment plan), specifically synthetic-DRIPs, came up on Canadian companies. Both he and I invest in companies through a discount broker, which does not support full DRIP and the discussion revolved around total investment dollars needed to DRIP in each company. This gave me an idea to compile the Canadian Dividend All-Star list of companies to see how much one needs to invest to achieve synthetic DRIP.

Note that this exercise is merely meant to be a resource that I am sharing and a company at either end of the scale may or may not be the best investment. Investors are recommended to perform due diligence before investing in any of the companies.

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Is Chevron Dividend Safe?

Chevron Small

Chevron Corp (CVX) is one of the largest oil & gas companies in the world. The company has a market cap of $160B and is an energy behemoth that operates in upstream and downstream businesses.

Last week, the company reported quarterly earnings of -$0.31 on a revenue of $29.25B, which is down 36.6% YoY. Its the first quarter that Chevron had such a huge loss in the past 13 years. While investors were expecting a bad quarter (and a bad year) from Chevron, it was still better than expected as the revenue beat the expectations. The company also announced a quarterly dividend of $1.07, which is what it has paid since Q2 2014.

The media lit up with news from Oppenheimer analyst Fadel Gheitpredicting a dividend cut from Chevron in the coming quarters as he predicts that the company is on an unsustainable path of borrowing funds to pay the dividends.

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Why You Should Average Down On Existing Positions

Following is a guest post from Dividend Beginner

Hello R2R readers, I am The Dividend Beginner, a 22-year old Canadian dividend growth investor from Montreal. I started following other DGI bloggers after I made my first stock purchase in the Vanguard US Total Stock Market Index ETF (TSE: VUN). Once I realized the benefits of dividend growth investing from an assortment of blogs, Roadmap2Retire being one of my favourites, I decided I too would become a dividend growth investor, with a focus on Canadian stocks. I sold my shares in VUN shortly after and began my DGI journey. In less than a year I’ve built up a passive income stream consisting of an average dividend income of $100 per month. I plan to be financially independent in my 30’s, though I don’t have it all planned out in full detail now. By day I’m a full-time medical software developer, and in my free time I enjoy reading about finance, the economy, and stocks, investing in dividend growth stocks, and developing apps and websites. You can view all my writing on The Dividend Beginner blog (www.dividendbeginner.com), and engage with me on twitter, @dividendbegin.

What is “Averaging Down”?

The process of averaging down on your stock investments is a technique wherein you purchase more shares of a currently held stock at lower prices than which you originally purchased. Through this process, you bring down the per share cost basis of your investment in that company; this makes it easier to break even or to turn a profit, but also makes it easier to lose more money as you’ve built a larger concentration of shares.

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Why Dividend Investing

I  wrote a guest post for Devin’s blog – Dividend Chimp, sharing my ideas about dividend investing. I cover some basic reasoning and alternatives to dividend investing and my ideas about the long term mindset including some pitfalls to avoid. Be sure to check it out – the full article is available here.

Thank you for the opportunity to guest post on your blog, Devin.