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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PROCTER & GAMBLE CO. $159 is a buy. The stock (New York symbol PG; Income-Growth Portfolio, Consumer sector; Shares outstanding: 2.3 billion; Market cap: $365.7 billion; Dividend yield: 2.7%; Dividend Sustainability Rating: Highest; www.pg.com) is one of the world’s largest makers of household and personal-care goods.


With the May 2025 payment, Procter raised your quarterly dividend by 5.0%, to $1.0568 a share from $1.0065....
Metro’s shares have gained 40% in the past year, and recently hit a new all-time high of $109. That’s partly due to the “Buy Canadian” trend. As well, its new automated warehouses in Montreal and Toronto are cutting its labour costs, which will help to offset any negative impact from tariffs....

POWER CORP. OF CANADA $54 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 642.7 million; Market cap: $34.7 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.powercorporation.com) holds controlling stakes in Canadian financial services firms Great-West and IGM....
GEN DIGITAL INC. $29 is a buy. The company (Nasdaq symbol GEN; High-Growth Dividend Payer Portfolio, Consumer sector; Shares o/s: 620.2 million; Market cap: $18.0 billion; Dividend yield: 1.7%; Dividend Sustainability Rating: Average; www.gendigital.com) owns several security-related consumer brands, including Norton, LifeLock and Avast, in addition to Avira, AVG, and CCleaner.


The company last raised your quarterly dividend by 66.7% in December 2019....

PEPSICO INC. $128 is a hold. The company (Nasdaq symbol PEP; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $179.2 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Above Average; www.pepsico.com) is the world’s second-largest soft-drink maker after Coca-Cola....

These two leading foodmakers face a variety of challenges, including tariffs, increased competition from generic brands and new bans on certain food additives. Even so, both have a long history of adapting to changing consumer tastes and other factors. That will let them maintain their current dividends.


GENERAL MILLS INC....
The top five Canadian banks tend to leapfrog each other in investment desirability. That’s why we recommend that all investors strive to own two to three of them, particularly as they are terrific source of reliable dividend income.


ROYAL BANK OF CANADA $176 is a buy. Canada’s largest bank (Toronto symbol RY; Income-Growth Payer Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $246.4 billion; Dividend yield: 3.5%; Dividend Sustainability Rating: Highest; www.rbc.com) will raise your quarterly dividend by 4.1% with the August 2025 payment....
ANDREW PELLER LTD. $5.33 (class A) remains a buy for long-term gains. The company (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 43.4 million; Market cap: $231.3 million; Dividend yield: 4.6%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer after Arterra Wines.


Peller last raised your quarterly dividend by 10% with the July 2021 payment....
Small-cap stocks tend to be more volatile than larger companies. Here are two high-quality small-caps that are leaders in their niche fields, which helps cut your risk. They also have a long history of paying dependable dividends.


CALIAN GROUP LTD....
ALTAGAS LTD. $38 is a buy. The company (Toronto symbol ALA; High-Growth Dividend Payer Portfolio; Utilities sector; Shares outstanding: 299.1 million; Market cap: $11.4 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.altagas.ca) processes, transports, stores and markets natural gas for producers....