Does investing take too long to make money?

Does investing take too long to make money? Yes, it does take time but the rewards are great for those willing to be patient. Don’t be lured by fast money, it comes with high risk. Value investors focus on long-term gain and are not tempted by quick money. Kelley Wright (Editor of IQT) writes:

“That, in a nutshell is what separates the value investor from all others. The value investor understands when a high-quality company with a long-term track record of managerial excellence, consistent dividends and dividend increases, is at a high-yield/low-price area [in other words undervalued], it’s because [most other] investors aren’t attracted to it, at the moment. Companies with these kinds of attractive fundamentals are eventually rewarded by the market with higher stock prices. In the meantime, you receive a return on investment from dividends and dividend increases.”

While waiting for higher stock prices, we collect dividends. For example, one share of TransCanada (TRP) purchased at $13.40 in 2000 has produced $23.59 in dividends. Here are some more examples of dividend increases:

• Since 2013, BNS dividends have increased by 29.8%
• Since 2012, BCE dividends have increased by 38.4%
• Since 2013, CM dividends have increased by 77.9%
• Since 2013, CNR dividends have increased by 130.8%

Avoid chasing after fast money, focus on buying quality stocks when they are undervalued. Your patience will be rewarded with increasing dividends.

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