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The Clientele Effect – When Dividend Cuts are Attractive
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.
Is Democratic Lending Going to Become the New Norm?
By Ryan Goldsman, CFP®, PAIP®
Close to one year ago, a good friend (who shares a background in the financial industry) told me about a new lending platform. He thought a lot of a service called GoPeer and shared the ins and outs of it with me. It definitely sounded interesting.
Dividend Yields and Payout Ratios
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.
Why American Express is Actually a Prestigious Offering
By Ryan Goldsman, CFP®, PAIP®
Like many people, the weekend means groceries, errands, a dinner with friends, and many more activities that require the presence of a wallet.
This past weekend was an eventful one as four different restaurants were visited, three different coffee shops, and close to ten other merchants. For the first time, I counted the number of merchants that had a note on the payment system “No Amex” or “We do not accept Amex” and there were many of them.
The Benefit of Share Buybacks
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.