Optimism #98 - October 27, 2026
Dear clients and friends,Happy fall.
I have not focussed enough on it but want to clarify that anyone with a personal corporation should (most likely) have a separate Will for it. Doing so should (I want to be careful about giving legal advice) bypass the probate issue as well avoid delays which can be 1 to 2 years, in the transfer of ownership and control.
September dividend increases from the Canadian Dividend All-Star List:
1.Savaria Corporation (TSE:SIS): 5.27% Dividend Increase [Dividend Streak: 13 years, Yield: 2.1%]
2.Tourmaline Oil Corp. (TSE:TOU): 5.00% Dividend Increase [Dividend Streak: 8 years, Yield: 3.4%]
3.The North West Company Inc. (TSE:NWC): 2.44% Dividend Increase [Dividend Streak: 7 years, Yield: 3.1%]
Here is a thought-provoking article about what may be an illusion of safety in ETFs. Diversification is being eroded by a few large holdings. Worth reading.
I also attached a good article on RESPs.
Here is a real chart and a beautiful story of a lady, age 70, who invested about $700,000 in Canadian dividend growth stocks with a Portfolio Manager in 1994. The black line is her contribution. It was initially about half a million, then you can see the line jumps a year later as she tops it up. The falling line shows her withdrawing money to live on. She eventually draws out all of her principal. Then the line goes below zero. She has taken more than she put in, another half a million dollars plus. When she died at age 96, her account was more than 6 million. In spite of some volatility, the strategy of holding a high percentage of those very best companies was extraordinarily successful.
Life is grand. Let us know if you have any questions.
Derek Moran
