The dividend yield is one of the important ratios to calculate for dividend stocks. It is calculated as the total annual dividends paid per share, divided by the current stock price. Movements in the stock price will change the dividend yield. When you’re looking for income-producing stocks, dividend yield is typically your most important consideration.
The best companies to invest in for a high dividend yield have strong positions in healthy industries. They also incorporate strong management that makes the right moves to remain competitive in changing marketplaces. Dividend yields are a sign of investment quality.Some good companies reinvest profit to spur growth instead of paying dividends. But fraudulent and failing companies are hardly ever dividend-paying stocks. So if you only buy stocks that pay dividends, you’ll automatically stay out of almost all the market’s worst stocks.
For a true measure of stability, focus on those companies that have maintained or raised their dividend yields during a recession or stock-market downturn. That’s because these firms leave themselves enough room to handle periods of earnings volatility. By continually rewarding investors, and retaining enough cash to finance their businesses, they also provide an attractive mix of safety, income and growth-and are a big part of a successful long term investment strategy
High dividend yields can be a warning sign, however
When looking for high dividend stocks, you should avoid the temptation of “reaching for yield.” That is, choosing investments purely because they offer a high current yield. That’s because a high yield may signal danger rather than a bargain, if it reflects widespread investor skepticism that a company can keep paying its current dividend. Dividend cuts always undermine investor confidence, and can quickly push down a company’s stock price. While a high-and safe-yield dividend is generally favourable, be aware that it is only one of many indicators that we look for in a good stock. You need to look at the big picture, so you get a realistic view of a company’s long-term prospects.
As well, at TSI Network, we recommend our three-part Successful Investor strategy:
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
Downplay or avoid stocks in the broker/media limelight.
PENTAIR PLC $72 (New York symbol PNR; Manufacturing Sector; Shares outstanding: 178.3 million; Market cap: $12.8 billion; Dividend yield 2.0%; Takeover Target Rating: Medium; www.pentair.com) is a diversified industrial manufacturing company that sells to businesses in the food, water and energy markets.
On April 30, 2018, Pentair will… Read More
BMTC GROUP $14.81 (Toronto symbol GBT; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 35.5 million; Market cap: $520.8 million; Dividend yield: 1.6%) is one of Quebec’s largest retailers of furniture, electronics and household appliances; it has 38 stores. The company mainly sells these items through two… Read More
EXTENDICARE INC. $8.65 (Toronto symbol EXE; TSINetwork Rating: Extra Risk) (905-470-5534; www.extendicare.com; Shares outstanding: 88.3 million; Market cap: $763.5 million; Dividend yield: 5.6%) has now completed the acquisition of the Lynde Creek Retirement Community in Whitby, Ontario, for $34.5 million.
The community includes the Lynde Creek Manor Retirement Residence… Read More
CHEMTRADE LOGISTICS INCOME FUND $15.33 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 92.6 million; Market cap: $1.4 billion; Dividend yield: 7.8%) is one of the largest removal-service providers for resource firms that create acids and sulphur as byproducts. The trust converts (and sells) these substances into… Read More
DEVON ENERGY CORP. $36.10 (New York symbol DVN; TSINetwork Rating: Extra Risk) (405-235-3611; www.dvn.com; Shares outstanding: 526.1 million; Market cap: $19.0 billion; Dividend yield: 0.9%) is one of the largest explorers and producers of oil and natural gas in the U.S. The production mix for the company’s 19,000… Read More
AGT FOOD & INGREDIENTS $16.51 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 24.2 million; Market cap: $400.2 million; Dividend yield: 3.6%) continues to feel the negative impact of low worldwide prices for lentils. That’s due to bumper crops and a resulting oversupply.
In the quarter… Read More
LEON’S FURNITURE LTD. $16.91 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 76.3 million; Market cap: $1.3 billion; Dividend yield: 2.8%) has steadily increased the number of stores under its Leon’s banner from 27 in 2003 to today’s 86.
In March 2013, the company nearly quadrupled in size… Read More
ALAMOS GOLD $7.20 (Toronto symbol AGI; TSINetwork Rating: Speculative) (604-681-2802; www.alamosgold.com; Shares outstanding: 266.3 million; Market cap: $2.8 billion; Dividend yield: 0.4%) owns the Mulatos and El Chanate mines in Mexico, and the Young-Davidson mine in northern Ontario.
The company also has a number of development projects in Turkey,… Read More
SYMANTEC CORP. $27.91 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 620.0 million; Market cap: $17.3 billion; Dividend yield: 1.1%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.
Symantec has now formed a partnership with NTT Security. That company is part of NTT… Read More
INTACT FINANCIAL $96.47 (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (416-341-1464; www.intactfc.com; Shares outstanding: 139.2 million; Market cap: $13.4 billion; Dividend yield: 2.9%) is Canada’s largest provider of property and casualty insurance. The company insures more than five million individuals and businesses. Its major brands are Intact Insurance,… Read More
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Does TSI Network Use the Information It Receives?
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How do we protect your personal information?
TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.
Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.
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