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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Business—both in Canada and internationally—remains strong for our two top Canadian insurance recommendations. These two stocks largely recovered all of the ground they lost in March 2020 with onset of the pandemic. We think they are now poised to move even higher....
BROOKFIELD RENEWABLE PARTNERS L.P., $45.98, is a buy. The partnership (Toronto symbol BEP.UN; Units o/s: 309.1 million; Market cap: $29.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.5%; www.brookfieldrenewable.com) cuts risk by selling power from its plants under long-term contracts....
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also driven up prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should stick with producers with positive cash flow even at low energy prices....
BANK OF NOVA SCOTIA, $93.19, is a #1 Buy for 2022. The lender (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $110.5 billion; TSINetwork Rating: Above Average; Dividend yield: 4.3%; www.scotiabank.com) is Canada’s third-largest bank.


Bank of Nova Scotia continues to reverse last year’s big increase in loan-loss provisions as the pandemic eases and the economy re-opens....
TD Bank was as well prepared—and well capitalized—to handle the COVID-19 pandemic as it was the 2008-2009 financial crisis. We still see TD Bank as a top pick, especially given its expanding and profitable U.S. businesses (including its just-announced acquisition of Memphis-based bank First Horizon Corp....
VICI PROPERTIES INC., $28.07, symbol VICI on New York, owns a major real-estate portfolio of gaming, hospitality and entertainment destinations. Its portfolio consists of 28 gaming facilities, and approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks.

The company’s properties are leased to major gaming and hospitality operators, including Caesars Entertainment, Century Casinos, Hard Rock International, JACK Entertainment LLC and Penn National Gaming.

Vici also has an investment in the Chelsea Piers development in New York City and owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip.

On August 4, 2021, the REIT announced an acquisition that would see it acquire MGM Growth Properties LLC (symbol MGP on New York) for $17.2 billion....
TC ENERGY INC., $66.68, Toronto symbol TRP, remains a buy.

TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.

The company will now raise your quarterly dividend by 3.4%....
MCDONALD’S CORP., $249.45, New York symbol MCD, is your #1 Conservative Buy for 2022.

The company is the world’s largest fast-food chain, with over 39,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries....
WALT DISNEY CO., $149.53, is still a buy. The entertainment and media conglomerate (symbol DIS on New York) is also the world’s largest theme-park operator.

Disney is now launching a new business that will let it enter the real estate market by developing residential communities for its most avid fans.

“Storyliving by Disney” will create master-planned neighbourhoods designed by members of the company’s research-and-development team; they’re known as “Imagineers.”

The first community will be built in Rancho Mirage, California, where Walt Disney himself once owned a home.

Some of the locations will be targeted toward older fans—focusing on residents age 55 and up—but not all....
ROYAL BANK OF CANADA, $140.37, Toronto symbol RY, is a buy.

Royal continues to benefit from higher loan demand from consumers and businesses as the economy recovers from COVID-19 lockdowns. Rising stock markets also boosted results at its wealth management division.

In the bank’s first quarter of fiscal 2022, ended January 31, 2022, earnings rose 6.4%, to $4.10 billion from $3.85 billion....