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!

Read More Close
Oil prices have almost doubled over the last year to today’s price of roughly $73 U.S. a barrel. Natural gas prices are up as well. Increased industrial activity is driving those gains as the world recovers from the pandemic.


Still, energy prices will likely remain subject to wide and unpredictable swings—spurred by continually changing supply and demand, environmental pressures, and the shift to electric vehicles....
Bank of Nova Scotia shares continue to soar beyond their pre-pandemic levels as the economy recovers from last year’s downturn. Meantime, restrictions that prevent federally regulated lenders like Scotiabank from raising dividends and buying back shares remain in effect....
Buying a base metals ETF, like one holding copper companies, is a great way to diversify your resources holdings beyond just gold.
Investing in the best TSX stocks can help you maximize your returns. Learn here about what we look for when making top picks from the Toronto Stock Exchange
A: Evolve Global Healthcare Enhanced Yield Fund, $22.85, symbol LIFE on Toronto (Units outstanding: 5.3 million; Market cap: $121.1 million; www.evolveetfs.com), aims to track the Solactive Global Healthcare 20 Index Canadian Dollar Hedged Index.

LIFE invests primarily in the stock holdings of that index....
Learn how to evaluate a stock before buying so you make picks that you can feel confident in as part of a sound long-term portfolio. Here’s what you need to know
Loblaw operates in one of Canada’s most competitive industries—one undergoing disruption by both technology and new entrants to the industry. The COVID-19 pandemic has only accelerated the pace of that disruption.

However, the company has invested heavily over the last few years in a number of key initiatives—from modernizing its inventory systems and supply chains, to expanding its e-commerce capabilities, loyalty programs, and telemedicine services.

These investments paid off in a big way last year during the pandemic....
TC ENERGY CORP. $63 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 979.0 million; Market cap: $63.6 billion; Dividend yield: 5.3%; 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....
IBM’s investors continue to benefit from its strong commitment to keep raising your dividend. They should also gain from its shift to cloud computing and the spinoff of a legacy business. While the company has yet to announce the details, it’s likely this new firm will also pay a dividend.


INTERNATIONAL BUSINESS MACHINES CORP....
RUSSEL METALS $34 is a buy. The company (Toronto symbol RUS; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.3 million; Market cap: $2.1 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.russelmetals.com) has paid regular quarterly dividends of $0.38 a share since the third quarter of 2014; the annual rate of $1.52 yields a high 4.5%.


Russel and Japan’s Marubeni-Itochu Tubulars America have now agreed to combine their respective Canadian OCTG/line pipe businesses....