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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HOWMET AEROSPACE INC. $42 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 412.3 million; Market cap: $17.3 billion; Price-to-sales ratio: 2.9; Dividend yield: 0.4%; TSINetwork Rating: Average; www.howmet.com) makes a range of industrial parts, from jet engine components and fasteners to forged aluminum wheels.


Howmet’s revenue in the fourth quarter of 2022 rose 17.7%, to $1.51 billion from $1.29 billion a year earlier....
STANLEY BLACK & DECKER INC. $78 is a buy for patient investors. The toolmaker’s (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.0 million; Market cap: $11.9 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.1%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) sales jumped during COVID-19 lockdowns as consumers focused on home improvement projects....

Prices for commodities such as crude oil, iron ore and copper have weakened lately as investor fear rising interest rates will trigger an economic slowdown. Even so, we continue to recommend all investors maintain exposure to resources as the sector’s high-quality producers will still gain as the economy rebounds.


CHEVRON CORP....
VISA INC. $223 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $468.3 billion; Price-to-sales ratio: 15.3; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network....

A key part of our approach to investing is to look for companies with hidden or overlooked assets that can help unlock long-term value for investors. In Procter & Gamble’s case, its hidden assets are its brand names, many of which have been around for over 100 years.


Those brands are making it easier for Procter to raise selling prices, to offset rising input costs, without losing market share....

You Can See Our Conservative-Growth Dividend Payer Portfolio for April 2023 here.


You can’t fake a record of dividends....
CAE INC. $29 remains a buy for long-term gains. The company (Toronto symbol CAE; Conservative-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 317.9 million; Market cap: $9.2 billion; Dividend suspended in March 2020; Dividend Sustainability Rating: Average; www.cae.com) makes flight simulators for commercial and military aircraft....
Canada’s grocery store operators have come under pressure for generating above-average profits in the wake of the COVID-19 pandemic. However, rising costs for food and labour are squeezing their profit margins. We feel high-quality grocers like Metro will adapt, and keep rewarding investors with higher dividends and share buybacks.


METRO INC....
LEON’S FURNITURE LTD. $17 is a buy for aggressive investors. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 67.0 million; Market cap: $1.1 billion; Dividend yield: 3.8%; Dividend Sustainability Rating: Average; www.leons.ca) operates 304 stores that sell furniture and home appliances, mainly under the Leon’s, The Brick, The Brick Mattress Store, The Brick Outlet and Appliance Canada banners.


To conserve cash during the pandemic, Leon’s cut your quarterly dividend by 25.0% in July 2020, to $0.12 a share from $0.16....
NORTH WEST COMPANY $38 is a buy. The company (Toronto symbol NWC; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 47.7 million; Market cap: $1.8 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.northwest.ca) sells food and everyday products and services at 219 stores....