|Going with the herd can be good if you pick the herd carefully. Click to enlarge.|
While saving for retirement, I suggest taking those dividends as they appear and immediately reinvesting them. Keep that dividend money working.
Retirement is another game entirely. In retirement you need money to live but you don't want to be cashing your investments constantly. At least, I don't. For me dividend investing is the answer.
In theory, I like ETFs and low MER mutual funds. In reality, I like anything that I feel confident in owning. With ETFs and funds I gain confidence from the rich mix that makes up the ETF or mutual fund portfolio. One mistep by one company is well buffered by the mix. With single stock investments, I say keep the amount invested a small percent of one's portfolio and a mistep will only stub your financial toe and not drop you to your knees.
Please keep all the above in mind as I tell you about Emera (EMA). Emera is one of the stocks on the ScotiaMcLeod Canadian Income Plus Guided Portfolio. It is in the utilities sector and carries a low risk ranking. It's price has been in the $31.70 area recently but it has a ScotiaMcLeod target value of $35. EMA pays a dividend of about four percent. I'd like more, but I can live with four.
If you can live with four and EMA fits your allocation model, maybe this is a buy for you. Do a little research and see what you think.