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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INTEL CORP., $48.11, Nasdaq symbol INTC, remains a buy for long-term gains.

The company is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all datacentres.

With the March 2022 payment, Intel raised your quarterly dividend by 5.0%....
PFIZER INC., $51.57, 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....
BIRCHCLIFF ENERGY LTD., $8.67, is a buy for aggressive investors. The company (symbol BIR on Toronto) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C. Its average output of 78,716 barrels of oil equivalent per day is 80% natural gas and 20% oil.

Cash flow in the quarter ended December 31, 2021, jumped sharply, to $0.73 a share from $0.25 a year earlier....
ROYAL BANK OF CANADA, $137.32, Toronto symbol RY, is a buy.

The bank will now purchase U.K.-based wealth management firm Brewin Dolphin Holdings Plc. Its assets under management totalled 59 billion British pounds (roughly $101 billion Canadian) as of December 31, 2021.

Royal will pay $2.6 billion for Brewin Dolphin....
PEMBINA PIPELINE, $47.23, is still a buy. The company (Toronto symbol PPL; Shares outstanding: 550.4 million; Market cap: $25.7 billion; TSINetwork Rating: Average; Dividend yield: 5.3%; www.pembina.com) has signed a deal with U.S.-based private equity firm KKR to combine their Western Canadian natural gas processing assets in a new joint venture.


The as-yet-unnamed new entity will be owned 60% by Pembina and 40% by KKR....
CHOICE PROPERTIES REIT, $15.49, is a buy. The trust (Toronto symbol CHP.UN; Units outstanding: 723.4 million; Market cap: $11.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.choicereit.ca) recently agreed to sell six office properties (3 in Toronto, 2 in Vancouver, and 1 in Montreal).


The buyer is ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST, $46.56 (Toronto symbol AP.UN; Units outstanding: 127.9 million; Market cap: $6.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.8%; www.alliedreit.com). The sale was for $794 million....
CANADIAN PACIFIC RAILWAY, $104.21, (Toronto symbol CP; shares outstanding: 929.7 million; Market cap: $95.9 billion; Rating: Above Average; Dividend yield: 0.7%) is still a buy.


U.S.-based activist investor Bill Ackman, through his Pershing Square hedge fund, now owns 2.8 million shares of CP....
Here are two of our top safety-conscious utility recommendations. Both have strong growth plans in place, which should boost their cash flow to pay for dividend increases as well as boost their share prices.


TELUS, $32.26, is a buy. The stock (Toronto symbol T; Shares o/s: 1.4 billion; Market cap: $44.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.1%; www.telus.com) gives you a stake in a wireless business with 11.42 million subscribers....
TD BANK, $101.42, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $184.2 billion; TSINetwork Rating: Above Average; Dividend yield: 3.5%; www.td.com) is a buy. The bank will now buy U.S. banking firm First Horizon Corporation....
The major Canadian and U.S. stock markets, while subject to volatility, have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time for new buying....