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!
The market downturn has hit the technology sector particularly hard, as higher interest rates prompt businesses and consumers to cut their spending on new computers and software. Even so, we feel IBM and Intel’s latest moves will help protect their current dividend rates.
INTERNATIONAL BUSINESS MACHINES CORP....
CHEVRON CORP. $175 is a buy. The company (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $332.5 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
TC ENERGY CORP. $55 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $55.0 billion; Dividend yield: 6.5%; Dividend Sustainability Rating: Highest; www.tcenergy.com) operates a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S....
The shares of these two U.S. banks continue to rebound from their pandemic lows. Even though a slowing economy is forcing them to bolster their loan reserves, they remain well capitalized. That should let them return more cash to shareholders.
J.P....
H&R REAL ESTATE INVESTMENT TRUST $12 is a buy. The REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 265.9 million; Market cap: $3.2 billion; Distribution yield: 5.0%; Dividend Sustainability Rating: Average; www.hr-reit.com) spun off most of its retail properties to Primaris REIT (see below) in January 2022.
The spinoff is part of H&R’s strategy to focus on its more-promising residential and industrial properties in Toronto, Montreal, Vancouver, and the U.S....
For a number of reasons, we think DRIPs are a good way for investors to slowly build wealth over a long period of time.
First, DRIPs eliminate the nuisance effect of receiving small cash-dividend payments.
Second, some DRIPs let you buy shares from your reinvested dividends at a 2% to 5% discount on the current share price.
Third, many DRIPs also allow you to buy additional shares on a monthly or quarterly basis without paying commissions.
Keep in mind, though, that while there is no harm in participating in a DRIP, too many investors select their investment ideas solely on the basis of the existence of the DRIP option.
We think the availability of a DRIP is only a bonus, rather than a reason to invest by itself....
AMERICAN EXPRESS CO....
On September 1, 2022, 3M merged its Food Safety business with Neogen Corp....