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!
ALGONQUIN POWER & UTILITIES, $17.78, is a buy. The utility (Toronto symbol AQN; Shares o/s: 675.6 million; Market cap: $12.0 billion; TSINetwork Rating: Extra Risk; Yield: 4.9%; www.algonquinpower.com) has two main businesses: the Regulated Services Group provides regulated electricity, gas, water distribution and wastewater collection services in Canada, the U.S., Chile and Bermuda; and the Renewable Power Group produces electricity from about 40 clean-energy plants in North America.
Through their Algonquin shares, investors also tap the company’s 44.2% stake in Atlantica Yield plc (symbol AY on Nasdaq)....
PEMBINA PIPELINE, $46.20, is a buy. The company (Toronto symbol PPL; Shares outstanding: 554.3 million; Market cap: $25.1 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil....
The Mulatos mine has now transitioned to a new, nearby deposit called La Yaqui Grande.
Initial gold production has started at the La Yaqui Grande mine, following the completion of construction this month, ahead of schedule....
The company is Canada’s second-largest wireless carrier, with 11.48 million users. That’s just behind BCE’s Bell Mobility (with 11.79 million users) and ahead of Rogers Communications (10.06 million users)....
CN operates Canada’s largest railway. Its 32,200-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico.
About 750 of CN’s signal and communications workers (3% of its total workforce) went on strike last weekend after their union and the company failed to reach a new contract deal.
So far, the walkout has had little impact on CN’s operations....