Stocks or E-Series Mutual Funds? Looking long-term and for dividend income
Looking for some financial advice here.
I'm making some pretty decent income, have 0 debt, am contributing in full to my pension fund at work, and have a healthy "emergency fund" and an unsecured LOC should the worst happen. I've got some extra cash in my savings account to play with, and I'm trying to figure out what to do with it.
I've got an E-Series Mutual funds account, but with virtually nothing in it
I've got a TD Waterhouse account, but with virtually nothing in it
Before making any major investments, I wanted to get some input from all of you first. These are cash accounts; they are NOT TFSA nor RRSP.
What I'm interested in is making investments in funds/companies that will result in dividends being paid monthly. Eventually, I'd like to get to the point where the dividend income I receive will be substantial...possibly even to the point where I'm capable of living off of it. Obviously, this is very ambitious, but setting a goal gives me something to work towards
The way I see it, I've got two options
1) Buy E-Series Mutual Funds focused on dividend income (main one was a non-E-Fund, TD Dividend Income...2% MER)
2) Buy stocks in dividend-paying corporations (banks, telecommunications companies, etc)
My strategy is to buy and hold for the (very) long term. I have no interest in being a day trader.
The amount I've got to play with at this moment in time is $4,000...got to start somewhere.
Which would you do? Why? Anything I should be wary/concerned about in going down one path vs the other?