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!
Insurers write policies, collect premiums from customers, and then invest those premiums to meet future claims. That need to cover claims means they invest significant amounts of their funds in fixed-income instruments, primarily bonds. That also means high interest rates are a boon to their returns....
Telus and Ovintiv are among the leaders in their respective markets. We still see both stocks as buys.
TELUS, $22.80, is a buy. The stock (Toronto symbol T; Shares outstanding: 1.5 billion; Market cap: $33.8 billion; TSINetwork Rating: Above Average; Dividend yield: 6.6%; www.telus.com) is a Canadian wireless carrier with 13.06 million subscribers....
The company has rebranded to highlight its new focus on two key Alberta oil and gas plays.
That’s after the sale of its assets in Utah and Saskatchewan, and acquisitions from Shell PLC and Paramount Resources to build a presence in Alberta’s Kaybob Duvernay region....
CHOICE PROPERTIES REIT, $12.95, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s: 327.9 million; Market cap: $9.4 billion; TSINetwork Rating: Average; Dividend yield: 5.9%; www.choicereit.ca) owns 705 retail, industrial, office space and residential properties with 66.1 million square feet of gross leasable area....
BANK OF NOVA SCOTIA, $64.99, is a buy. The lender (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $79.9 billion; TSINetwork Rating: Above Average; Dividend yield: 6.5%; www.scotiabank.com) is Canada’s third-largest bank.
Due to current economic uncertainty as a result of relatively high interest rates and inflation, Bank of Nova Scotia set aside $1.01 billion to cover future loan losses in its fiscal 2024 second quarter, ended April 30, 2024....
