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!
Metro has formed a new alliance with AddÉnergie Technologies Inc....
GREAT-WEST LIFECO, $39.95 (Toronto symbol GWO; shares outstanding: 932.4 million; Market cap: $37.3 billion; TSINetwork Rating: Above Average; Dividend yield: 5.6%; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial....
ENBRIDGE, $48.83, is a buy. The firm (Toronto symbol ENB; Shares o/s: 2.1 billion; Market cap: $103.8 billion; TSINetwork Rating: Above Average; Dividend yield: 7.5%; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....
With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important is their mix of hydroelectric, wind and solar power. That diversity, along with their long-term contracts, provides stable cash flows....
Under a new partnership with electronics retailer Best Buy, it plans to re-brand 165 of these stores as “Best Buy Express” outlets....
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $15.66, is a buy. The REIT (Toronto symbol AP.UN; Units outstanding: 128.0 million; Market cap: $2.2 billion; TSINetwork Rating: Average; Dividend yield: 11.5%; www.alliedreit.com) owns 198 office buildings and eight properties under development, mainly in major Canadian cities....
Loblaw keeps innovating to maintain its growth....
TD Bank cancelled its deal to acquire First Horizon Corp. for $13.4 billion in May 2023. Part of the reason was that U.S. regulators were concerned by lapses in its anti-money laundering procedures. However, TD is making progress in settling this issue, and the bank is also enhancing its compliance systems to prevent further violations....