Money Matters

The very best for your money

Margaret left us last month with these words: “You’ll see that there is a way to have long-term capital growth with steady secure income that grows by at least 10% a year. All it takes is a little patience, discipline, flexibility and a competent money manager.”

Fine words, well spoken.
Margaret is a very regular sort of person. She’s fun. She thinks. She reads. She logs her expenses. She refuses to knit and to grow old. She’s a happy woman.

Margaret especially likes her dividends. She enjoys the sound of money moving into her bank account every month and she’s secretly delighted at how the dividends grow, quietly, consistently and predictably.

It’s an investment philosophy she adopted in her early 50s even though she thought she was too late. She made some calculations: if she buys a stock that pays a 3% dividend, and that dividend increases annually by an average of 15%, then by the time that 13 years have gone by, she will have received in dividends as much as she has paid for the stock in the first place.

“Margaret, you’ll have to do the math again. I’m a bit slow,” her friend Paul’s face shows confusion.

“Here’s $10,” Margaret likes things simple. “Let’s say that’s what I pay for one share of a company which offers a 3% dividend, or 30 cents in the first year. As they raise their dividend 15%, the following year I receive 35 cents, the year after 40 cents, then 46 cents and so on until in the 13th year, I’ve received over $10 in dividends, just as much as I’ve paid the stock in the first place.”

“Wow!” Paul gets it. “And I imagine that the stock price has changed over that time too?”

“You bet,” Margaret’s proud. “The $10 in this case is worth $70. Talk about having your cake and ice cream too!”

Her friend Paul, as always, has a question: “If it works so well, and if it’s so simple and elegant and if it would solve the problems of the world, why don’t more people use it?”

Margaret’s quick with the reply: “One, it’s awfully dull. Two, it takes time. Three, because it takes time, most people lose patience. They’d rather use the stock market like a casino,” she waves an imaginary wand to emphasize the point.

Paul knows Margaret’s getting up on her soapbox so he changes the subject slightly. “You said that you used a money manager but I never heard the whole story. How did you meet her?”

“Well you know my accountant extraordinaire Lawrence CA, he’s the one who introduced me to the Adena Franz Group at MacDougall, MacDougall & MacTier Inc. The company’s been around for over 150 years and their reputation is solid gold. He said I’d find the Group an incredible pleasure to work with. I kidded him because I didn’t think I had enough money.”

“So how did it go?” Paul knows that Margaret’s finances weren’t always as strong as they are now and he’s keen to hear the rest.

“Larry was right,” Margaret replied. “Larry is always right,” she winks.

“We met them for about an hour the first time. That was just before the bubble burst on Nortel. She was great! Actually, I never met someone who listened to me quite like she did.

“We began with what I had and agreed on how to move forward. We got to know each other and as the relationship grew, so did the account. She has a ‘one-in-a-million’ assistant who’s first-rate. My calls are answered or returned within the hour. There are rarely any errors and those that are, are fixed immediately.

“The Group takes care of it all. I trust them and you know how I’m often skeptical about people, especially salespeople. I can leave on vacation, knowing they’re in charge.

“And I dreaded those transfer forms, however, Pina the assistant made it easy and enjoyable. For the first time in my life, literally, I was unafraid to sign because I’d had it all been explained, even the devil’s fine print.”

“Wow,” Paul’s eyes were round. “You’ve really been bowled over.”

“Well when you find the people in life who are there to truly help you, that take pride in what they do, it’s a whole different ballgame. You can see it, hear it, feel it and experience it. You should call them, Paul,” Margaret adds. “There’s no risk in meeting her and seeing for yourself.”

Call us at 514-394-3771 for a risk-free, confidential meeting to discuss how you too can enjoy increasing income. You won’t regret it.

The Adena Franz Group has over 16 years’ experience of successful portfolio management and is with the independent firm
MacDougall, MacDougall and MacTier Inc.
1010 de la Gauchetière West, Suite 2000
Montreal, Qc H3B 4J1
Phone: 514-394-3771
Email: [email protected]

The information contained in this article is for general information purposes only. It does not account for specific investment objectives or the financial situation of any person reading it. Opinions expressed are those of the author and do not necessarily represent the opinions of MacDougall, MacDougall & MacTier Inc. Investors should seek professional advice regarding the appropriateness of investing in any securities discussed or recommended here and should recognize that statements regarding future prospects may not be realized.