Income is Scare. Casting a Wide Net Can Pay Dividends
Saleem Tyab - Sep 15, 2017
For the first time ever, there are now more people in Canada age 65 and over than there are under age 15, according to Statistics Canada. The proportion of those aged 65 and older climbed to 16.9 per cent of Canada’s population and many of them have
For the first time ever, there are now more people in Canada age 65 and over than there are under age 15, according to Statistics Canada. The proportion of those aged 65 and older climbed to 16.9 per cent of Canada’s population and many of them have one thing in common: they want their dividends. Millions of retiring baby boomers need income, but they may have to search far and wide for yield.
Historically, dividends have always played a significant role in driving equity returns and helping investors meet their financial goals. Dividend income is especially important during retirement. At a time when an increasing number of people are approaching retirement age, the dividend yield of the S&P/TSX Composite High Dividend Index*, and the yield on Canadian and U.S. Treasuries, are all at relatively low levels.
To be sure, strong demand for dividend income has driven valuations for many traditional dividend payers in Canada and the U.S. — such as utilities and consumer staples — high above long-term averages.
Looking for a dividend and income oriented mandate for your portfolio?
Sentry Canadian Income is the perfect dividend and income solution for a Canadian investor’s portfolio. Sentry’s “house style” experienced portfolio managers apply a consistent and disciplined investment process. The mandate provides growth and income with less volatility including upside participation, downside protection and cash flow along the way.
To learn more about Sentry’s award-winning portfolio management team and if their solution is suitable for you, contact me today.
Investing in Sentry Canadian Income may not be suitable for all investors, as there are different types of risks involved with this investment strategy. Even if suitable to your level of risk tolerance, Sentry Canadian Income may not be appropriate for your portfolio, depending on what other investments you hold.
* Source S&P Dow Jones Indices: S&P/TSX Composite High Dividend Income Index indicated dividend yield 4.72% as of July 31, 2017