November 2024
Is Market Volatility Coming?
I don’t know about you but I have been so consumed with the upcoming U.S. election. Like most people around the world, I am eager to know how it all turns out. I anticipate controversy and a lengthy process in the recounting of votes to legitimize the winner once it’s all said and done. This could take time.
I would be lying if I said I wasn’t shocked at how close the two candidates are in the polls. I go back and forth wondering if it’s the media trying to sway people one way or the other, but then I keep telling myself that the poll sampling could be very small, likely skewed in a certain direction, or it could just be completely out of sync with reality.
Regardless of the outcome, I suspect great volatility in the U.S. and Canadian markets as a result of this election. Some people may think it won’t affect our Canadian market being as the election is down south, but the close tie between our countries makes us an accomplice of sorts. Any fall out will likely bring our market with it, at least partly.
The rallies of the past few months for Canadian dividend investors have been wonderful to see and participate in. My portfolio is sitting at an all time high - likely yours is as well. It’s nice to see all those unrealized gains increase in size, and I’m certainly not one to sell my favourites to capture a gain.
My daughter asked me just the other day if she should sell her Manulife shares. No, I responded. The allure is great when you see the money sitting there and dream of what you can do with it. I get it, I’m definitely a dreamer, but I also know that the stocks I own will continue to pay me handsomely over time and that my income will grow.
It’s hard for her to see that day materialize as it’s so far off in her future. I can see the temptation in wanting to sell. The real issue for most investors is the waiting. Patience is key, but it’s so hard at times. By nature, when people think of investing, trading comes to mind. Buy high, sell low. So when the price of our stocks go up and those gains are just staring us in the face, the allure to take those profits is powerful.
What do you buy if you sell? That’s the big question. Usually whenever I’ve done this, anything I’ve bought has turned out to be a dud and my gains get washed down the toilet. It’s a vicious circle when you turn around and keep picking stocks purely for gains. Yes, gains are important, but for dividend investors like you and me, what’s more important is our growing income.
Dividend investors aren’t in the game for the capital gains. It likely won’t be us anyway that reap those benefits. It’s more likely our heirs that will be thanking us for being staunch dividend investors.
It’s the growing quarterly income that we’re after; the capital gains are just a bonus.
October Dividend Income
In October we earned $5,766 in dividend income, our highest month yet. This amount is 4% higher than last October. We are anticipating a 12% year-over-year increase come year end. Not a bad raise if I do say so myself.
The companies that paid us this month are as follows: