The Globe and Mail reports in its Monday edition investors can best cope with
market turmoil by holding onto high-quality dividend-paying
stocks. The Globe's Jeffrey Jones quotes Leon Frazer & Associates' president
Dona Eull-Schultz as saying despite the turmoil, payouts among established
operators of necessary infrastructure
and services remain relatively predictable.
They include utilities, pipelines,
railways and Canada's banks. When fielding calls from nervous
clients, Ms. Eull-Schultz likes to remind them about the
energy, phone and other services
they use each day regardless
of market gyrations. At the heart of the firm's philosophy
is increasing clients' income
to stay above inflation through investments in companies
with staying power. Case in point: Fortis. With 3.1 million
gas and power customers, Fortis has boosted its dividend
by 5 per cent annually over the
past five years, generating a 3.5-per-cent yield.
BCE, the country's largest
telco, and Canadian banks, including
TD and Royal Bank of Canada,
are all good bets. Canadian banks showed their
mettle during the financial crisis,
having maintained their dividends
when financial institutions in other countries
faltered.
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