The best of the web on money, markets and all things financial, as chosen daily by Globe and Mail personal finance columnist Rob Carrick.
The retirement income crisis ahead
A tough-minded and smart take on how financially unprepared people are for retirement. This is a New York Times piece, but it’s relevant to our Canadian situation as well. All in all, it offers a strong argument for enlarging the Canada Pension Plan to provide a greater piece of the retirement savings that people will need.
The good, the bad and the ugly of dividends
A contrarian take on a trend in which companies have been increasing the amount of money they pay to shareholders as dividends. Rising dividends can be a sign that companies are looking to placate investors rather than build the business.
A look at the merits of focusing on dividend stocks paying a high level of income right now versus those with lower yields but also the potential to increase their dividends down the road. Included here is a mention of some relevant exchange-traded funds listed on the TSX.
Is all the money pouring into dividend stocks these days creating a bubble? Maybe, it says here, but there are solid fundamental reasons why investors love dividend stocks right now.