Archive of posts filed under the Canada category.

The Periodic Table of Annual Returns For Canadians – From 2010 To 2020

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The Periodic Table of Annual Returns in Canadian Dollars from 2010 to 2020 is shown below. In 2020 the TSX index returned 5.6% compared to 16.1% for the S&P 500 in Canadian Dollar terms. Click to enlarge Credits: Many thanks to Norbert Schlenker at Libra Investment Management for collecting the data that this calculator uses. Original …

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The Most Valuable Company in Canada is a Tech Company

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As we head into the first trading day for 2021 I was reviewing the top companies in Canada and what I found surprised me. The Most Valuable Company in Canada based on Market Capitalization is the e-Commerce platform provider Shopify Inc(SHOP). Unlike the US, the tech industry is tiny in Canada and not many tech …

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Why Canadian Investors Should Diversify Globally

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The Canadian equity market is highly concentrated. Just four sectors – financials, materials, industrial and energy account for about 70% of the market. As with investors in any other country it is wise for Canadian investors to not hold all their assets in the domestic stocks and instead diversify across other sectors in foreign countries. …

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On The Importance of Dividends in the Long-Term Returns of Canadian Stocks

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Dividends are important part of a total return of an equity investment. The contribution of dividends to the overall total return cannot be under-estimated.  Even if the dividend yields are small over time returns will be amplified many times over due to the power of compounding and dividend reinvestment. As with other equity markets, dividends …

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Canada S&P/TSX Composite Index Historical Annual Returns 1924 To 2019: Chart

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The historical annual returns of Canada’s benchmark S&P/TSX Composite index from 1924 to 2019 are shown in the pyramid chart below. Canadian stocks yielded a positive return in about 73% of the time. So in the long run, stocks tend to offer positive returns despite crises such as the dot-com crash, financial crisis of 2008-09, etc. …

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