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!
INNERGEX RENEWABLE ENERGY, $12.88, is a buy. The power generator (Toronto symbol INE; Shares outstanding: 204.3 million; Market cap: $2.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.6%; www.innergex.com) operates 40 hydroelectric plants, 35 wind farms and nine solar power fields....
BCE INC., $57.66, is a buy. The company (Toronto symbol BCE; Shares o/s: 912.3 million; Market cap: $52.7 billion; TSINetwork Rating: Above Average; Yield: 6.7%) is Canada’s largest traditional telephone service provider....
CHOICE PROPERTIES REIT, $13.29, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s: 327.9 million; Market cap: $9.7 billion; TSINetwork Rating: Average; Yield: 5.6%; www.choicereit.ca) owns 702 retail, industrial, office space and residential properties with 63.8 million square feet of gross leasable area....
In the three months ended July 31, 2023, revenue rose 12.2%, to $13.01 billion from $11.60 billion a year earlier.
Concerns over higher interest rates and inflation have also prompted TD to set aside $766 million for potential loan losses, up 118.2% from $351 million a year earlier....
PEMBINA PIPELINE, $42.17, is a #1 Buy for 2023. The company (Toronto symbol PPL; Shares outstanding: 549.2 million; Market cap: $23.0 billion; TSINetwork Rating: Average; Dividend yield: 6.3%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil....
