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!
Five years later, Carrier is up over 370%, while Otis has gained about 120%....
We keep an eye on activist investors as they tend to target struggling firms, such as Kenvue and El Pollo, that could boost shareholder value with asset sales and spinoffs. However, these two stocks offer limited appeal right now.
KENVUE INC....
FEDEX CORP. $207 is a buy. The courier company (New York symbol FDX, Consumer sector; Shares outstanding: 240.9 million; Market cap: $49.9 billion; Dividend yield: 2.7%; Takeover Target Rating: Medium; www.fedex.com) is down 25% since the start of 2025, partly due to fears that U.S....
Both firms get some of their products from China and other countries, so U.S....
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We prefer 3M, which has gained 45% as the spinoff lets it focus on improving the performance of its remaining operations.
While Solventum is down 5% from its launch price, it still has long-term appeal....
The declaration date is the date on which a company’s board of directors actually sets the amount of the next dividend. Typically, it is a number of weeks in advance of the actual payout date.
The record date is the date on which a person must actually own shares in the company in order to receive the declared dividend.
The ex-dividend date is typically the same as the record date, or one business day before if the record date is not a business day....