Hello Folks - it sure has been a bit of a crazy ride in the markets the last few weeks - as we are all aware.
RY.TO up well over one dollar yesterday and today down over a dollar today - no real reason for it that I can see.
As part of why I think Dividend investing is they way to go for me, I conducted a little math experiment on a spreadsheet with my KEG.UN holdings. The holding I have in this are enough for me to do the synthetic DRIP offered by TD Waterhouse, and as a result I get 1 unit each and every month, with a couple of extra dollars left over to accumulate in my account.
The assumptions of the experiment are:
1) - The stock price stays the same throughout
2) - The dividends are accumlated within the account were not DRIPped
3) - Only ran the numbers for three years
I found it interesting that by simply DRIPping my gains of three years outpaced that of Non-DRIPping by nearly 1.8% - by really doing nothing. This of course does not account for the added gains that my occur in the stock itself over that time, or for that matter any increases in the dividend itself.
Have a look: