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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Sobeys has undergone significant changes since this article was published in 2006, including its delisting by owner Empire Company LTD.
ALIMENTATION COUCHE-TARD INC., $73.39, is a buy. The retailer (symbol ATD on Toronto) operates 12,337 convenience stores, mostly in North America and Europe.

In the three months ended July 23, 2023, Couche-Tard’s revenue fell by 16.3%, to $15.62 billion from $18.66 billion a year earlier (all figures except share price in U.S....
ENBRIDGE INC., $47.60, Toronto symbol ENB, remains a buy.

The company operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to 3.8 million consumers in Ontario and Quebec.

With the March 2023, payment, Enbridge raised your quarterly dividend by 3.2%....
RTX CORP., $75.80, New York symbol RTX, is still a buy for long-term gains.

The company recently changed its name from Raytheon Technologies Corp. (it did not change the trading symbol). Formed from the 2020 merger of Raytheon and United Technologies, it is a leading maker of commercial aircraft equipment, electronic systems for military aircraft, and guided missiles.

The stock dropped 4% this week after the company’s Pratt & Whitney unit announced that contaminated metal in some engine parts will force it to remove and inspect between 600 and 700 jet engines over the next three years.

RTX will record a charge of $3.0 billion in the third quarter of 2023 to cover these costs....
ROYAL BANK OF CANADA, $124.12, Toronto symbol RY, is still a buy.

In November 2022, the bank agreed to pay $13.5 billion in cash for the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC). To put that cost in context, Royal’s market cap (the total value of all outstanding shares) is $172.3 billion.

HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally....
The United States has been the world’s leading economy for many decades—and we think U.S. companies will continue to offer ETF investors unparalleled opportunities.


Here is an ETF that provides exposure to the top U.S. stocks.


VANGUARD TOTAL STOCK MARKET ETF $82.24 (Toronto symbol VUN; TSI Network ETF Rating: Aggressive; Market Cap: $6.5 billion) tracks the performance of a broad basket of U.S....
Oil and gas prices have pulled back lately, but still remain high. Meanwhile, demand should remain elevated for several years to come as the world continues to rely on fossil fuels even as it shifts to more-sustainable renewable energy sources.


Here are three ETFs that focus on oil and gas exploration and production....
Biotechnology companies have been at the forefront of some of the most exciting developments in healthcare over the past two decades—and there are more developments in the pipeline. However, the high cost of product development, long lead times for product testing and regulatory approvals, and low success rates add to their risk.


Here are two ETFs that benefit from the opportunities presented by biotech firms despite those challenges....

CAE INC. $33 (www.cae.com) remains a buy. The company expects the global air travel industry will need 1.3 million new pilots, aircraft maintenance technicians and cabin crew over the next 10 years....
Potash prices have fallen 60% in the past year after spiking in the wake of Russia’s invasion of Ukraine in February 2022. In response, Nutrien paused its plan to expand its potash production. However, the long-term outlook for fertilizer prices remains bright, particularly as China and India aim to boost their domestic food production....