Realizing how competitive the returns have been and successful over time with the Dogs of the Dow and Dogs of the S&P 500, we launched their brother dog, the Dividend Dog of Canada and wow so far this puppy is barking good.
The performance is too good and too short to benchmark properly. The income is too high to feel completely comfortable yet; when you consider we’re still in a global pandemic this story is just too good to be true, but it is. In the first roughly two months since launch, this Canadian Dogs portfolio is up over 17% (where the Dow Jones ETF is up only 7.6%).
This has also outperformed the Dogs of the Dow and Dogs of the S&P 500 easily. But you must remember both the Dogs of the Dow and Dogs of the S&P have a 3 year track record, where this new Dividend Dogs of Canada only has a 2 month record.
The stock and income performance over two months has been too good. Even though this paints a great return in 2020 overtime we believe the Canadian Dividend Dogs will be in line with most of our Dogs portfolios. Please note that historical dividend aristocrats (the Dogs of Canada select dividend increasing companies) outperform over time.
With the extremely high dividend of over 7%, this is a welcome return in the rough and tumble world of investing in 2020.
After watching the news at least until the US elections and the riots are passed, maybe it would be good to have money in another government and country. These Canadian-based companies provide very unique diversification especially for a concentrated portfolio. All the companies are Canadian, and even though Canada shares the longest border with the US, and is mostly English, it has its own government, currency, banking, economy, and prime minister. Its economy is more weighted to the natural resources industries. This enables very significant diversification, away from the high dividend companies in the US, while still being somewhat correlated to the US.
Canadian Dividend Dogs is a concentrated portfolio of high dividend aristocrats based in Canada. Their risk return, government and currency is unique to their own country and overtime it appears that they have been somewhat correlated to the US markets.
Dividend Dogs of Canadian Lifetime Performance 6-28-2020
Dividend Dogs of Canada
Annual Cost: 0.50% or 1/8 of a percent per quarter.
Average Dividend Yield of About: 7.10%
Minimum Investment: $15,000
No Cost Transactions
Minimum Holding Period: None
First started at an amazing 7% rate. Bear in mind also that the Canadian Dividend Dogs are Canadian companies that have a history of raising their dividend each and every year. Knowing it should grow over time is not enough for our dogs. Durig also rebalances the portfolios quarterly, plus they provide dynamic weighting so the accounts should provide higher income after each rebalancing. In addition, with Durig Dogs all trades are completed transaction free even the Canadian companies. Give these factors, there is a high probability the divided income could go up every year.
The 7% dividend rates in Canada are some of the best rates we could find in our current display of programs. With America, Europe and Japan offering with very low to negative interest rates, it makes it very hard to find good income, and much harder yet to find income with very good principal performance. We question the long term performance and believe it will be close to the norms for those looking for income. With a $1 million dollar investment this portfolio will generate $70,000 in income per year without removing any principle. That’s much higher than the Dogs of the Dow or Dogs of the S&P, and that in itself should become very attractive.
We offer our successful Durig’s Dividend Dogs of Canada investment strategy to other Charles Schwab Registered Investment Advisors through segregated accounts. Our price is the very low cost of only 50 basis points and the RIA can apply an additional fee that they believe is best situated for your clients and/or your firm.
For clients of Charles Schwab advisors, please ask us how this might work for you and your current Financial Advisor.
Please review the right hand column for advisor programs available.
Disclaimer: Past performance is no indication of future success. The high yield strategies presented in this review by Durig may not be suitable for all investors. This is not investment advice from Durig, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision. Information on this website is provided for informational purposes only and is not offered as advice with respect to any particular security or related financial instrument. This information should not be used as a basis for making an investment decision and must not be treated as a substitute for seeking advice from a licensed professional. The suitability of a given investment for a particular investor depends on a number of factors, each of which should be considered carefully. Such factors include, but are not limited to, the risk associated with the investment, the nature of current market conditions, and the investor’s objectives, personal needs, and specific circumstances.