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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High interest rates tend to increase the appeal of bonds and hurt the shares of high-quality utility stocks, including the four we analyze below. We feel they are particularly attractive buys right now as it looks like the Bank of Canada will cut interest rates later this year.


FORTIS INC....
CENOVUS ENERGY INC. $24 is a buy. The country’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) plans to spend between $4.5 billion and $5.0 billion on exploration and upgrades in 2024....
Telus is down 11% in the past year. That’s largely due to rising interest rates, which tend to increase costs for utilities and so reduce their appeal with investors—despite their high yields. Lower earnings at Telus’s publicly traded Telus International, which helps businesses manage their call centres and websites, has also weighed on the stock.


Regardless, we feel Telus’s long history of rising dividends makes it a strong pick for income-seeking investors....
Switzerland has a stable, export-oriented economy, which regularly ranks among the world’s most competitive. In addition, it is home to some of the top performing and best-known global companies. The Swiss economy continues to outperform the overall Euro area, aided by comparatively low inflation and interest rates, as well as by its large chemical and pharmaceutical industries, which are relatively insensitive to global business cycles.


Here is one ETF that provides exposure to leading Swiss publicly traded companies.


ISHARES MSCI SWITZERLAND ETF $47.38 (New York symbol EWL; TSI Network ETF Rating: Conservative; Market cap: $1.2 billion) tracks the performance of the largest publicly listed Swiss companies.


Healthcare companies account for 33% of the assets, while Consumer Defensive (21%), Financial Services (18%), Basic Materials (9%), and Industrials (9%) are other key segments.


The ETF holds a portfolio of 41 stocks; the top 10 holdings make up a sizeable 67% of its assets....
GLOBAL X SUPERDIVIDEND ETF $21.23 (New York symbol SDIV) invests in 100 of the highest-yielding stocks worldwide.


Stocks in the fund’s portfolio are equally weighted to reduce the risk associated with a high exposure to individual companies....
We first recommended Alphabet (then called Google) as a buy for aggressive investors in our August 2011 issue of Wall Street Stock Forecaster at $607 (or $15.175 adjusted for splits). Since then, the stock has gained a whopping 767.8% for our subscribers.

That success is largely due to the early effectiveness of its Internet search algorithms, which delivered more useful results to its users than competing search engines....
Conagra Brands yields a strong 5.0% as its efficiency improvements help sustain the payout despite declining revenues and earnings.
Campbell Soup offer a solid yield as it looks to grow through an acquisition while cutting costs and maintaining brand strength.
During the pandemic, Texas Roadhouse implemented savvy strategies to support its businesses. Now we think it’s well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers.

We recommend this stock as a Power Buy....
Top pick IBM expects rising revenues and cash flow to support a solid 3.6% yield even as the shares have returned an impressive 43.4% over the last year.