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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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!

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McCormick & Co. Inc. offers a solid yield and beat revenue and earnings forecasts but rates no better than a hold due to its limited market prospects.
GENERAL MILLS INC., $73.71, New York symbol GIS, is still a hold.

This consumer staples giant is one of the world’s largest foodmakers. Its top brands include Cheerios (cereal), Pillsbury (baking dough), Progresso (soups and salads) and Blue Buffalo (pet food), which it acquired in April 2018 for $8.0 billion.

The company has agreed to sell its North American yogurt business....
VERIZON COMMUNICATIONS INC., $44.43, New York symbol VZ, is a buy.

The telecom provider is the second-largest wireless carrier in the U.S. after AT&T, with 114.2 million consumer cellphone subscribers. It also sells traditional telephone lines, high-speed Internet and TV services.

With the November 2024 payment, Verizon will raise your quarterly dividend by 1.9%, to $0.6775 a share from $0.655....
TC ENERGY INC., $63.27, Toronto symbol TRP, is a buy.

TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.

On October 1, 2024, the company will complete the spinoff of its oil pipeline business as separate company South Bow Corp....
Companies that own and operate unique infrastructure assets have characteristics such as stable profits and cash flows that make them attractive to long-term investors. And investors seeking exposure to these assets have several publicly listed options, including ETFs.


Indexes that track the performance of listed infrastructure companies have performed as well as the broad global equity markets over the long term; they have also experienced similar or lower volatility than the markets....
Cenovus Energy Inc. offers a solid yield and plenty of upside from a value, growth and income perspective with a 24% cash flow boost anticipated this year.
TD CANADIAN EQUITY INDEX ETF $26.59 (Toronto symbol TTP; TSINetwork ETF Rating: Conservative; Market cap: $1.9 billion) invests in large and medium-sized publicly listed Canadian companies.


The ETF aims to track the Solactive Canada Broad Market Index.


The fund currently holds 276 stocks; the largest segment weighting is allocated to Financial companies (31%), followed by Energy (17%), Basic Materials (14%) Technology (8%), and Industrials (7%).


The top 10 holdings make up 34% of its assets....

MAPLE LEAF FOODS INC. $22 (www.mapleleaffoods.com) is a hold. The company plans to spin off its pork processing business as a separate firm in 2025. It raises and processes hogs and accounts for 32% of Maple Leaf’s total sales....
Enbridge is now in the process of buying three U.S. natural gas utilities. While big purchases like these add risk, rate-regulated businesses generate predictable cash flows, which the company can then use to pay down the loans it took out to fund the deals. Moreover, the improved cash flow will let the company keep raising your dividend.


ENBRIDGE INC....
COLLIERS INTERNATIONAL GROUP INC. $194 is a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.7 million; Market cap: $9.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.2%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of real estate services, including helping clients buy and sell commercial properties, arrange financing, and assess properties for tax purposes.


Colliers uses acquisitions to enhance its market share and spur its long-term growth....