It always feels good to beat the index. The Beat the TSX strategy is made for that and has shown great results in the past. Is buying the top 10 dividend yielders from the TSX 60 all you need to succeed? Let’s dive into this!
Click here for the 2022 BTSX stock list.
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- What is the Beat the TSX strategy made of: sort the TSX60 stocks by dividend yield (forward dividend yield) and buy the top 10 stocks with equal dollar amounts. How does it compare to the Dogs of the Dow (in the US)?
- If you had done it in 2022, you would hold ENB, MFC, POW, BCE, AQN, TRP, BNS, PPL, T, SU. What do the results look like?
- What type of fees or tax implications can such a strategy have?
- Diversification seems at risk with this strategy. Is it dangerous? Should investors mix it with other types of investment?
- One flaw many forget to mention about BTSX is how you rationalize your decision when your portfolio is down? How to invest with conviction?
Matt at Dividend Strategy has numerous articles about this strategy that can help investors understand the concept even better. Here’s a graph from his website showing that Beating the TSX has beaten the index over the last 3, 5, 10, 20, and 30-year periods.
As dividend growth investors, we all like dividend increases. Wouldn’t it be perfect to have a list of the most amazing dividend growers and just pick some from the basket? Those lists exist, but today we’ll discuss their pros and cons and share our safe list!
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