The stocks of most Canadian corporations are traded on the Toronto Stock Exchange, or TSX as it is abbreviated. It is the leading stock exchange market in Canada. It is the third largest in all of North America. It is based out of the nation’s largest city, Toronto. It is, even, open to international corporations as well, trading stocks from companies in the United States, as well as Europe. It is also the largest trader for mining, oil and gas stock. The exchange runs on conventional hours. The Toronto Stock Exchange deals with more than just conventional securities; it also lists a series of other exchange traded funds, income trusts and additional investment funds.

The Toronto Stock Exchange listed 3,841 as of the year 2008. Many of these companies are Canadian Dividend Stocks. A dividend is a payment from a corporation to its shareholding members. Profits made by the corporation are in this case are divided and paid to anyone who owns stock in the company. The dividend is usually a fixed amount per share that the individual holds. Additionally, the dividend is paid on a predetermined schedule, but a bonus dividend can be paid at any time at the company’s discretion. Some of the top dividend paying stocks on TSX include the Yellow Pages Income Fund paying 13.23% per share followed by Enerplus Resources Fund with 9.39% of the share price per dividend pay period. The top fifty dividend-yielding companies on the TSX are easily identified through research. A retail investor pursuing an income investing strategy thus stands to benefit greatly. Though one of the simplest investment strategies, income investing brings with it the ability to compound your growth through the reinvestment of dividends. The Yellow Pages Income Fund, mentioned previously, would have allowed an investor to, nearly, double their initial investment over an eight-year time frame. That is, of course, assuming that the income was reinvested in the fund-and that the dividend remained constant.

The Toronto Stock Exchange is a full-fledged and functioning stock market that lists an immense number of corporations and is responsible for millions of dollars in revenue each year. Like many mature stock exchanges, it is an excellent opportunity for dedicated individuals to make smart investments. One potential strategy is to invest in dividend-yielding; it is a straightforward and comprehensive way to be involved in the stock market, and a substantial market like the Toronto Stock Exchange is an excellent place to invest.

    Posted in Investing from Investor on 30. Jun. 2010