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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You’ll Learn
- 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?
Related Content
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.
Our friends from Million Dollar Journey and My Own Advisor also have a section on the BTSX.
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!
Dividend Growers Lists: Where to Find Good Stocks? [Podcast]
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This podcast episode has been provided by Dividend Stocks Rock.
I’m a huge fan of BTSX. I hear you on your concerns, and sure, it might be possible to tweak the process based on additional criteria. But, there’s no denying that, as it stands, it repeatedly beats the index. It would be interesting to see if your tweaks further that delta.
Hello James,
You are right, BTSX works!
But keep in mind it’s relatively easy to do better than the TSX due to its high sector concentration (for better or worse) :-).
Mike, I am a member since late 2021, now see an email with supposedly a n attached podcast about Beating the TSX, but I cannot get access. Where should I go next?
Hello Bernard, you can listen to the podcast on your favorite platform or just click on the “play button” :-).
Mike, who is your Guest Lady. Not seeing her name on this podcast
Good Job. Following you with your statergies. Go MiKe Go !
Paul
Hey Paul!
That’s my collaborator for the past 11 years, Veronique (or Vero in the podcast) 🙂
She’s the magician behind each podcast episode 🙂
HI MIKE,
Love your blogs and enthusiasm for investing.
What do you think of seniors who lost almost half
of their net worth in the market? And where would
we go from here, considering there is not enough
time left to make it up? Thank you.
Ann
Hello Ann,
I think it’s important that you review your portfolio and the causes of such losses. Is it due to bad investment? heavy sector allocation? Do you have a financial advisor? Did you sell during the crash?
It’s important to understand our mistakes to make sure we don’t do them again.
Then, you can start investing with a strategy that fits your risk tolerance and financial goals. I’ve become a dividend growth investor a while ago because it works for me. However, there are several valid methods.
Cheers,
Mike