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!
At the same time, though, the share prices of utility companies are generally hurt in a rising interest rate environment for two reasons: first, utilities overall carry high levels of debt and their interest costs will likely go up as rates rise; second, dividend investors may find rising yields on fixed-income instruments more appealing when compared to the dividend yields on utility companies.
However, the main attraction of utilities remains their secure and steady growth provided by long-term contracts with energy regulators....
Roundhill Financial launched the GENERATIVE AI ETF $27.72 (New York symbol CHAT) on May 18, 2023....
The Dutch economy recovered well from the COVID-19 pandemic....
LOBLAW COMPANIES LTD....
Despite the shift to eating at home during the pandemic, Maple Leaf Foods has stayed in a narrow range of $20 to $30 over the past five years. That’s largely due to the problems at its plant-based foods business. While a new plan should cut losses for this business, the stock will likely remain in its narrow range until profits significantly improve.
MAPLE LEAF FOODS INC....