Education RSS

By PAIP Canada staff

            Canada’s Federal government recently tabled a budget that is expected to increases one type of Registered Education Savings Plan (RESP) withdrawal from $5,000 to $8,000.

By PAIP Canada staff

            When compared to past generations, the average person is living longer than ever. All things considered, this is a good thing, but it also brings up certain challenges.

By PAIP Canada staff

            The typical reaction to a dividend cut is a reduction in a company’s share price, and why wouldn’t it be? It seems rationale. If an investor is being paid a certain amount to hold a stock and that amount is reduced, why continue holding the stock? It’s similar to showing up to the office on a Thursday morning and being told that your salary has been cut from $120,000 per year to $85,000 per year. No one would simply accept it and continue doing their job.

By PAIP Canada staff

            Having discussed share buybacks last week, we now want to consider dividend yields and payout ratios. Dividends are typically a share of a company’s profits, and are sought after by investors. They signal continued prosperity of the company in question. If a company can’t afford to pay its dividend, then shareholders would receive nothing.

By PAIP Canada staff

            “Company ABC is going to increase its dividend.”

When we hear that a company is going to increase its dividend, it usually translates to a positive sentiment. It makes shareholders happy as it increases their financial rewards. It also signals that the company either has increasing profits or a lack of new investment opportunities to deploy their capital.