When it comes to building long-term wealth, the debate of stocks versus real estate has always been front and center. Both options offer unique advantages — from dividends and liquidity in the stock market to rental income and stability in real estate. The key question remains: which investment is better for you? How Different Assets Grow Not all assets grow the same way. Toby describes a baseline growth pattern: Gold and a primary home typically follow a relatively linear growth path — useful as stores of value but not cash-generators. The S&P 500 and rental real estate show stronger long-term, compound growth when dividends or rents are reinvested or increase over time. The U.S. dollar (cash under the mattress) loses purchasing power over time due to inflation. Historically, the S&P 500 has averaged a little over 10% annual return since inception, and roughly 40% of that long-term growth has come from dividends. Rental real estate typically appreciates around 4–5% long term, with rents providing a parallel cash-flow component. Dividends vs. Rents — The Compounders Dividends (Stocks) Dividends are the stock…

Dividend ETFs come in many shapes, but this guide focuses on equity dividend ETFs. Important concepts to understand: Trailing yield: A historical measure — dividends paid over the past year divided by current price. Distribution yield: A forward-looking number that assumes the most recent payout continues into the future. MER (Management Expense Ratio): Annual fee embedded in the ETF’s price. Lower MERs preserve more of your returns over time. DRIP / Reinvestment: Dividends can be reinvested manually or automatically via a Dividend Reinvestment Plan (DRIP) or broker automation. Registered accounts: Use TFSA or RRSP when possible to shelter gains and dividends from taxes. Top 3 Canadian Dividend ETFs #3 — BlackRock XDIV (iShares MSCI Canada High Dividend Yield Index) Overview & structure: XDIV tracks the MSCI Canada High Dividend Yield 10% Security Cap Index and is a concentrated fund with just 20 holdings. It’s heavily weighted to financials and energy. Sector exposure: ~46.6% financials, ~31% energy, ~13% utilities Top holdings: Sun Life, TD, Manulife, RBC, Enbridge, Suncor, Fortis Yields: Trailing yield ~4.40%; Distribution yield ~4.76% MER: 0.11% (very low) Performance:…