Taking long view on dividend stocks

Susan Brunner began investing in the mid-1970s with a 30-year plan to build a portfolio that would let her retire early and indulge in her favourite pastime of reading. “I especially like to read history, but also enjoy economics, investing, science and sci-fi.” In 1999, she was laid off from her job. At first she thought she would have to get another position because, among other things, her son was about to go to college. Then she did some calculations and realized she didn’t have to go back to work. “If you do not work ... and if your income is mostly dividends rather than salary, taxes are a lot less,” she explains.

Her core portfolio is invested in dividend stocks for the long term. “I still have the first two stocks I bought in the 1970s, which were BMO and BCE,” she said. Outside her core portfolio, she has invested in tech and small-cap stocks. She likes companies that are easy to understand and regularly raise their dividends. She also looks for growth in revenue, cash flow and book value.

Source: Globe and Mail

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