Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Get full access to
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(}function setPanelState(o){dom.root.classList[o?"add":"remove"](,dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The top retail investing story of the ten years following the global financial crisis has to be the rise of dividend stocks. Dividend-payers have had some ups and downs over that period, but they offered familiarity, stability and steady returns that were supported by their quarterly cash payouts. What more could you want if you’re part of this country’s huge boomer demographic and looking just ahead to retirement?

Here’s something – bear-market protection. For a bunch of reasons, investors have started to view dividend stocks as something of a haven from stock market turbulence. A reality check on whether dividend stocks provide bear market protection was recently done by Dan Hallett, vice-president at Highview Financial Group and one of the most astute and frank observers of the Canadian investing scene.

His conclusion was that dividend stocks offer no special bear-market protection. One time when dividend stocks did outperform was the 2000 bear market, but that was because the market decline focused on technology stocks and was not as broad-based as other market pullbacks.

Story continues below advertisement

Dividend stocks are a great option for investors, particularly dividend growth stocks that increase their cash payouts year by year. Share prices may be volatile, but dividends arrive every quarter. They’re a tangible return that can’t be taken away from you once paid.

But don’t expect more from dividend stocks than they can deliver. Diversification through bonds is what protects a portfolio in a downturn, not holdings in blue-chip dividend stocks.

Subscribe to Carrick on Money

Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.

Rob’s personal finance reading list…

15 U.S. dividend kings

A list of U.S.-listed stocks with a record of dividend growth going back to the late 1960s. Canada has some similar stocks, but long-term dividend growth is more commonly found in the U.S. market.

Story continues below advertisement

Eight fridge habits that cost you money

Just as you thought … opening your fridge too much will cost you. So will both overfilling and underfilling a fridge.

For parents helping to support adult kids

An advice columnist tackles a question from a 29-year-old who vents about parental support of two older siblings. This millennial is a bit resentful about not receiving similar help but also wonders whether the parents can afford all the financial assistance they’re providing.

Car accidents and your insurance costs

Good info here on what happens when you make a claim on your car insurance for accidents where you’re at fault and not at fault. Be sure to check out the part about a common insurance policy feature called accident forgiveness. Your insurer may “forgive” an accident in terms of not raising your premium, but the accident remains on your record.

Story continues below advertisement

Ask Rob

Q: My investment adviser has me invested in an number of different mutual funds, both equity and bond funds. I would like to compare the return of these against their benchmarks and alternative ETFs. But how do I include all dividends in my comparative returns?

A: The practice in the mutual fund and ETF businesses is to report returns on a total-return basis, which means that both changes in unit price and dividends are considered. For the most accurate comparisons, use the S&P/TSX composite total return index when assessing Canadian equity mutual funds and ETFs.

Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

Members of the Financial Wisdom Forum have a go at helping someone who wants to dump a full-service investment adviser and go the DIY route. Good practical points raised here.

Story continues below advertisement

Video of the week

What people in common-law marriages need to know about division of property if they separate. The solution might be a cohabitation agreement.

What I’ve been writing about

  • Six ways the Liberal election win will change your family finances
  • The give and take of reverse mortgages: Cash in your hands while your home equity gets eaten way
  • How to pick the right fee-for-service financial planner (for Globe Unlimited subscribers)

More Carrick and money coverage For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group. Send us an e-mail to let us know what you think of my newsletter. Want to subscribe? Click here to sign up.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies