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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MKS INSTRUMENTS INC., $84.96, symbol MKSI on Nasdaq, is a leading global developer, manufacturer, and supplier of instruments and components used to measure, control, and analyze gases used in semiconductor manufacturing.

The company also produces instruments for manufacturers of fibre optics, flat-panel displays, gas lasers, and solar cells....
TRAVEL + LEISURE CO., $35.78, symbol TNL on New York, is still a buy. The company is now the world’s largest vacation ownership and exchange business.

Travel + Leisure operates 245 timeshare resorts, with over 833,000 owners. Meanwhile, the company has a global audience of 35 million followers across multiple platforms and nearly 60,000 club members.

The company is in the process of transforming its business from timeshare-centric to a multi-branded enterprise focused on leisure travel....
PFIZER INC., $40.39, New York symbol PFE, is a buy.

The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia).

Pfizer has increased its dividend rate each year since 2011....
ALPHABET INC., Nasdaq symbols GOOG $106.06 [class C: non-voting] and GOOGL $105.44 [class A: one vote per share], is your #1 Aggressive buy for 2023.

The company is the parent of Google, the world’s leading Internet search engine—it handles over 80% of global search requests....
CGI INC., $127.47, Toronto symbol GIB.A, is your #1 Aggressive Buy for 2023.

The stock lets investors tap Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions like accounting and buying supplies....
Short answers to current issues of importance for Canadian investors:

Q: Pat, do you think this Silicon Valley Bank (SVB) collapse is powerful enough to set off a broad slump in the North American or even the world banking industry, something like the 2008/2009 downturn?

A: I doubt it....
PFIZER INC., $40.10, New York symbol PFE, is a buy.

The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia).

Pfizer has agreed to acquire Seagen Inc....
CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST, $14.22, is a top pick for 2023.

Choice is Canada’s biggest REIT, with 702 retail, industrial and residential properties totalling 63.9 million square feet of gross leasable area. Its occupancy rate is a high 97.8%....
CANADIAN PACIFIC RAILWAY LTD., $106.14, Toronto symbol CP, is your #1 Conservative Buy for 2023.

The company has received approval from the U.S. Surface Transportation Board for its acquisition of U.S.-based railway Kansas City Southern (KCS).

CP originally completed acquisition in December 2021....
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should focus on producers with positive cash flow even at low energy prices....