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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Due to rising inflation, particularly for food, consumers are increasingly price-sensitive. That’s prompting more shoppers to visit discount retailers like Walmart.


As the world’s largest retailer, Walmart is in a strong position to demand lower prices from its suppliers....
CANADIAN IMPERIAL BANK OF COMMERCE, $55.44, Toronto symbol CM, remains a buy for long-term gains.

CIBC is now raising your quarterly dividend by 2.4% with the January 2023 payment. Investors will then receive $0.85 a share instead of $0.83. The new annual rate of $3.40 yields a high 6.1%.

As well, starting with this payment, the bank will let shareholders automatically re-invest their dividends in new common shares at a 2% discount to the market price.

The stock has dropped 14% since the start of December, mainly due to concerns that rising interest rates will slow demand for new residential mortgages and refinancing....
DREAM OFFICE REIT, $14.90, is still a buy. The REIT (symbol D.UN on Toronto), sold 138 properties in 2016 as part of a new strategic plan. Due to those sales, in July 2017, Dream cut its monthly distribution to $0.0833 a unit from $0.125. The new annual rate of $1.00 yields a high 6.7%.

Dream now has 27 office properties, including two under development....
PFIZER INC., $51.43, New York symbol PFE, is your #1 Income Buy for 2022.

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

Pfizer has increased its dividend rate each year since 2011....
BANK OF MONTREAL, $120.63, Toronto symbol BMO, remains a buy.

In December 2021, the bank agreed to acquire California-based Bank of the West from France’s BNP Paribas for $16.3 billion U.S.

Bank of the West provides a variety of retail and commercial banking services to over 1.8 million customers through 514 branches in 24 states, mainly in the Western and Midwestern regions of the U.S....
Proceed cautiously with your fixed income investment ideas and make sure that you know the risks that accompany those investments.
TMX GROUP LTD. $139 is a hold. The company (Toronto symbol X; Finance sector; Shares outstanding: 55.6 million; Market cap: $7.7 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.tmx.com) owns Canada’s two primary stock exchanges, the Toronto Stock Exchange and the Montreal Exchange, as well as clearing entities for domestic Canadian markets (CDS and CDCC).


TMX Group is now paying an undisclosed sum for Boston-based Wall Street Horizon Inc....

On August 3, 2021, L Brands (old New York symbol LB) became two separate firms: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.


Both stocks initially rose after the split....
TEGNA INC. $20 is still a hold. The company (New York symbol TGNA; Consumer sector; Shares outstanding: 222.9 million; Market cap: $4.5 billion; Dividend yield: 1.9%; Takeover Target Rating: Highest; www.tegna.com) owns 64 TV stations and two radio stations in 51 U.S....
Entertainment firms continue to rebound following easing COVID-19 restrictions and venue re-openings. These two companies now aim to further boost value with spinoffs. Still, neither stock currently inspires our confidence.


LIBERTY MEDIA GROUP operates a variety of communications and entertainment businesses through three tracking stocks: Liberty SiriusXM Group (Nasdaq symbols LSXMA, LSXMB, and LSXMK) operates satellite radio and online streaming services, as well as concert promoter Live Nation; Braves Group (Nasdaq symbols BATRA and BATRK) owns the Atlanta Braves professional baseball club; and Formula One Group (Nasdaq symbols FWONA and FWONK) owns the commercial rights to the famous motor racing series.


Note: Tracking stocks give investors financial exposure to a specific aspect of a larger company’s business, but usually come with limited or no voting power....