It’s time for dividend-growth investors to consider rebalancing their portfolios for 2021. The
S&P/TSX Canadian Dividend Aristocrats Index is making constituent changes, which became effective on February 1. Nine freshly minted Dividend Aristocrats have made their way into the index for 2021. The index dropped three unfortunate names this year.
Generally, Dividend Aristocrats are companies that have paid increasing dividends for over 25 consecutive years. This makes them some of the best dividend-growth stocks for income investors to buy at any time.
The 87 stock S&P/TSX Dividend Aristocrats Index includes stocks that have generally “increased ordinary cash dividends every year for five years.” However, some index additions may have maintained the same dividend for a maximum of two consecutive years within the past five years before inclusion. Canadian dividend-growth investors may use this index for new ideas or as a yardstick when creating and rebalancing portfolios every
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Some Canadians use a portion of their Tax-Free Savings Account (TFSA) as an emergency fund. You can be much better off by saving your TFSA contribution room for higher-return investments. Instead, put the emergency fund in a high-interest non-registered account.
Take advantage of your TFSA for a juicy tax-free income stream. If your account is large enough, your TFSA can pay $1,000 per month immediately.
Here are a few high-income Canadian Dividend Aristocrats you can check out for your TFSA tax-free income stream.
Enbridge stock yields 7.7%
Enbridge (TSX:ENB)(NYSE:ENB) consists of a massive network of liquids and gas pipelines are essential businesses that transport or distribute oil and gas across North America.
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One of the most sought-after life goals for Canadians is to achieve financial freedom. Generally, citizens in developed countries, including Canada, have high debt levels that do not allow them to secure their retirement.
Now, the onset of the COVID-19 pandemic has made matters worse; it has increased the personal debt of millions of Canadian residents. The country’s unemployment rates have surged higher, and people without a nest egg have had to borrow money to pay for essential needs and requirements.
The dreaded coronavirus has disrupted our lives in a matter of a few months and has shown us the fickle nature of global economies. Now, you need to take matters into your own hands and ensure to create multiple revenue streams to accelerate your path towards financial freedom.