dividend
A dividend is a cash payout that serves as a way for companies to share the profits they’ve accumulated through their operations. These payouts are drawn from earnings and cash flow paid to the shareholders of the company. Commonly these dividends are paid quarterly, although they may also be paid annually or even monthly as well. A dividend can produce as much as a quarter of your total return over long periods. Some good companies reinvest profits instead of paying a dividend. But fraudulent and failing companies hardly ever pay a dividend. 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 companies that have maintained or raised their dividends during recessions and stock market downturns. 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 provide an attractive mix of safety, income and growth. Dividends are an important contributor to your long-term gains, and dividend-paying stocks tend to expose you to less risk than non-dividend-payers. That’s why the majority of your stocks should be dividend-payers at all times. As you get older and closer to retirement, you should raise the proportion of dividend-paying stocks in your portfolio, to cut risk and improve the stability of your investment results. To maximize your investment returns with the least risk, follow TSI Network and use 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.
Discover how to put an extra strength in your portfolio with our specific advice on how to identify high-quality dividend stocks. It’s all in our newly updated report, Dividend Paying Stocks: How High Dividend Stocks Can Supercharge Your Income Investing. And it’s yours FREE!
SUNCOR ENERGY INC. $55 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $71.5 billion; Price-to-sales ratio: 1.3: Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is now raising your quarterly dividend by 4.6%....
Insurer Great-West Lifeco and mutual funds provider IGM Financial continue to benefit from their recent moves to focus on their core businesses. We still like both, but prefer IGM for your new buying.
GREAT-WEST LIFECO INC. $48 is a hold. The insurer (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 931.2 million; Market cap: $44.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial....
Nutrien’s shares are down over 50% from their April 2022 peak following Russia’s invasion of Ukraine, which caused a big spike in potash prices. However, potash supplies and prices later declined. Even so, the company’s stands to gain from a rising global population and the need for more and better food....
ENBRIDGE INC. $60 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.2 billion; Market cap: $132.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 6.1%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....
That’s good news for these leading retailers. They should also benefit as supply chains normalize after the COVID-19 disruptions. Moreover, all three continue to trade at attractive multiples to their projected earnings and are increasing their dividends.
LOBLAW COMPANIES LTD....
We expect the stock will continue to rise in the next few years as Metro realizes the benefits from two new distribution warehouses that use robotic sorting equipment....
