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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Spinoffs remain a great way for companies to unlock value for investors. That’s why we still like Danaher, which is moving ahead with its third spinoff in seven years. On the other hand, Ammo recently suspended its spinoff plan, which further clouds its already poor outlook.


DANAHER CORP....
NORDSTROM INC. $22 is a hold. The retailer (New York symbol JWN; Consumer sector; Shares outstanding: 166.2 million; Market cap: $3.7 billion; Dividend yield: 3.4%; Takeover Target Rating: Medium; www.nordstrom.com) owns and operates over 350 stores in the U.S....

These two technology-focused firms have struggled in the past year. But, their shares have moved up lately as activists push for changes meant to lift their earnings. Still, these firms don’t yet inspire our confidence. Here’s why.


SALESFORCE INC....
It bears repeating: spinoffs let companies narrow their focus to their core businesses. That pleases investors, as they prefer “pure play” firms that are easier to value.


A good example is cardboard maker WestRock, which spun off its Ingevity chemical business in 2016 to create two pure-play firms....
BECTON DICKINSON & CO. $244 is a buy. The medical device maker (New York symbol BDX; Manufacturing sector; Shares outstanding: 283.9 million; Market cap: $69.3 billion; Dividend yield: 1.5%; Takeover Target Rating: Medium; www.bd.com) spun off its Diabetes Care business in April 2022 as embecta Corp....

In 2019, the old DowDuPont (New York symbol DWDP) split itself into three separate, more-focused companies—DuPont, Dow and Corteva.


All three are up since the split, as investors prefer pure-play companies over conglomerates that hold a variety of businesses....
A: PPG Industries Inc., $129.69, symbol PPG on New York (Shares outstanding: 235.0 million; Market cap: $30.5 billion; Manufacturing sector; TSINetwork Rating: Average; www.ppg.com), is the world’s largest producer of coatings and paints for the automotive, aerospace, construction, and industrial markets....
A: Deere & Co., $407.65, symbol DE on New York (Shares outstanding: 298.2 million; Market cap: $121.6 billion; Manufacturing & Industry sector; TSINetwork Rating: Above Average; www.deere.com), started up in 1837 when its founder, John Deere, began making polished-steel plows at his blacksmith shop in Grand Detour, Illinois.

Today, the company is the world’s largest maker of agricultural equipment, with manufacturing plants in the U.S., Canada, France, Germany, Spain, South Africa, Mexico and Argentina....
TELUS CORP., $27.25, Toronto symbol T, is your #1 Income Buy for 2023.

The company is Canada’s second-largest wireless carrier (after BCE) with 12.16 million subscribers. It also sells landline phone, Internet and TV services in B.C., Alberta and eastern Quebec.

With the January 2023 payment, Telus increased your quarterly dividend by 3.7%, to $0.3511 a share from $0.3386....
CHIPOTLE MEXICAN GRILL INC., $1,583.89, remains a buy. The stock (symbol CMG on New York) lets you tap this Mexican restaurant chain, headquartered in Denver. The company is a fast-food leader charging slightly higher prices than its competitors but offering better quality food, including naturally raised meat.

In the quarter ended December 31, 2022, sales were up 11.2%, to $2.18 billion from $1.96 billion a year earlier....