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!
On October 16, 2023, the old NCR Corp. (New York symbol NCR) completed its plan to split itself into two separate firms. One (called NCR Atleos) focuses on ATMs, and the other (called NCR Voyix) focuses on digital commerce businesses.
Investors received one share of NCR Atleos for every two NCR shares they held....
GENERAL MILLS INC. $69 is a hold. This consumer staples giant (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 564.5 million; Market cap: $40.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.4%; www.generalmills.com) is one of the world’s largest foodmakers....
SNAP-ON INC. $292 is a hold. The company (New York symbol SNA; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 52.9 million; Market cap: $15.4 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and industrial customers.
In the fourth quarter of 2023, Snap-On’s revenue (excluding financial services) rose 3.4%, to $1.20 billion from $1.16 billion a year earlier....
Governments in the U.S. and other countries are now mandating that automakers phase out production of gasoline-powered cars and trucks and shift to electric-powered vehicles (EVs). However, consumer demand for EVs remains weak due to their higher costs and concerns over their range of use between chargings and the availability of charging stations, themselves.
We continue to prefer Japanese automakers Toyota and Honda for your new buying instead of U.S.-based Ford....
We recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. That’s mainly because it offers a hedge (some protection) against inflation.
To further cut your risk, you should focus mainly on high-quality producers, like Chevron, with large reserves in politically stable countries....
