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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A: Allegion plc, $135.13, symbol ALLE on New York (Shares outstanding: 87.1 million; Market cap: $11.7 billion; www.allegion.com), sells security products and solutions in 120 countries.

The company is based in Ireland for tax purposes, but it has regional corporate centres in Carmel, Indiana; Brussels, Belgium; and Shanghai, China.

Allegion sells to commercial, institutional, and residential end-users....
The COVID-19 pandemic resulted in short-term disruptions to elective medical procedures. Despite that, hospital-equipment supplier Steris kept reporting rising revenue and profits. In fact, the stock went on to hit an all-time high of $252 in April 2022. It then retreated to about $160 later that year as supply-chain disruptions hurt the company....
Market leaders like Cintas Corp. use their dominance to leverage their scale and expertise to drive growth. When combined with varied revenue streams, this diversification reduces risk and enhances revenue stability.

That’s how this company has consistently grown revenues and earnings – it’s a top performer that’s well-positioned to keep expanding its footprint through strategic acquisitions of smaller competitors.

The stock trades at 47.4 times the company’s forward earnings forecast, a number that sounds high until you take into account the exceptional growth prospects that market leaders enjoy....
ROYAL BANK OF CANADA, $164.08, Toronto symbol RY, is a buy.

With the August 2024, payment, Royal raised your quarterly dividend by 2.9%. Investors now receive $1.42 a share instead of $1.38. The new annual rate of $5.68 yields 3.5%. The bank also announced a new plan to buy back about 2% of its outstanding common shares over the next year.

On March 28, 2024, Royal completed its purchase of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion.

HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally....
VERIZON COMMUNICATIONS INC., $41.15, 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.

This week, the company agreed to acquire Frontier Communications Parent Inc....
NORTH WEST COMPANY, $50.70, is a buy. The retailer (symbol NWC on Toronto) sells food, and everyday products and services through 227 stores. Those locations are mainly in northern communities across Canada and Alaska. Through your shares, you also tap the company’s operations in remote regions of Hawaii, the wider South Pacific and the Caribbean.

North West’s food offerings consist of perishable and non-perishable products including groceries, dairy, produce, meat, convenience foods, food service, home meal replacement, health and beauty aids, paper products and cleaning supplies....
COLLIERS INTERNATIONAL GROUP INC., $189.43, Toronto symbol CIGI, is a buy for aggressive investors.

This company offers a range of services, including helping clients buy and sell commercial real estate, arranging financing, and assessing properties for tax purposes.

Colliers tends to use acquisitions to enhance its market share and spur its long-term growth....
Restaurant Brands Int’l trades at a reasonable valuation, especially considering its diverse brand portfolio & long-term international growth prospects.
ALGONQUIN POWER & UTILITIES, $7.19, is a buy. The utility (Toronto symbol AQN; Shares o/s: 689.7 million; Market cap: $5.5 billion; TSINetwork Rating: Extra Risk; Yield: 5.3%; www.algonquinpower.com) has agreed to sell most of its non-regulated renewable power assets for $2.28 billion....
IBM, $204.11, is still a buy. The company (New York symbol IBM; Shares outstanding: 921.1 million; Market cap: $188.0 billion; TSINetwork Rating: Above Average; Divd. yield: 3.3%) is shutting down its China research and development department and moving those functions to other overseas facilities....