4 Canadian Stocks to Buy Under $25 fool.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.ca Daily Mail and Mail on Sunday newspapers.
Image source: Getty Images
Canadian investors looking for passive income have tonnes of choices, as there are many dividend stocks in Canada. Finding the best dividend stocks, though, depends on what you’re looking for. Dividend investing is a great feeling and one of the best investing strategies there is. Not all dividend stocks are alike, though.
Larger, more reliable dividend stocks are often not very volatile, making them key for stability in the portfolio. Plus, older, more established businesses that earn consistent cash flow are usually the ones more likely to pay dividends.
The more cash that companies return to investors, the less they are investing in growth. That’s why bigger, more mature companies return more cash to shareholders. Small-cap stocks with a tonne of potential, however, usually pay no dividend or very little of their earnings.