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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A: Kimberley-Clark Corp., $142.29, symbol KMB on New York (Shares outstanding: 338.0 million; Market cap: $47.0 billion; www.kimberley-clark.com), is a leading maker of personal-care and tissue products. Its brands include Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve, Plenitud, Viva and WypAll.


The consumer goods giant has been in business for 149 years and its wide range of family, baby, and feminine care brands are sold in over 175 countries....
The United Arab Emirates is a small country in a potentially volatile region, with neighbours like Yemen and Iran nearby. Still, it has used its oil riches wisely to diversify the economy and become a major commercial hub in the Middle East.


Here’s an ETF that provides exposure to the top companies listed in the UAE.


ISHARES MSCI UAE ETF $13.42 (New York symbol UAE; TSINetwork ETF Rating: Aggressive; Market cap: $27.9 million) tracks the performance of the largest publicly listed UAE companies.


Financial Services account for 51% of its assets, while Telecommunications (15%), Real Estate (14%), Industrials (10%), and Energy (5%) are other key segments.


The ETF has a portfolio of 32 stocks; the top 10 holdings make up a high 72% of its assets....

Demand for renewable energy continues to grow, supported by government incentives and technological advances that lower costs. Still, the broad increase in power needs worldwide—along with relatively cheap oil and natural gas prices—should keep fossil fuels as the primary energy source for years to come.


There is, however, room for both renewable and fossil fuel providers to operate profitably.


Here are two ETFs that aim to benefit from growing investor interest in renewable energy (see the supplement on page 50 for more information).


INVESCO GLOBAL CLEAN ENERGY ETF $31.05 (New York symbol PBD; TSINetwork ETF Rating: Aggressive; Market cap: $425.4 million) invests in firms that focus on renewable sources of energy and technologies facilitating cleaner energy.


The ETF invests globally with the largest allocations to the U.S....
LEON’S FURNITURE LTD. $22 (www.leons.ca) is a buy. It operates 304 stores that sell furniture and home appliances, mainly under the Leon’s, Brick, and Appliance Canada banners. To slow the spread of new variants of COVID-19, the Ontario government has implemented a new stay-at-home order until early May....
TECK RESOURCES LTD. $27 is a buy. The stock (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $14.3 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.teck.com) explores for and develops various types of minerals, including copper, gold, zinc and metallurgical coal (which is used for making steel)....
While Enbridge continues to face environmental opposition to its new pipelines, we still feel these projects are likely to go ahead as planned. What’s more, the cancellation of the Keystone XL pipeline also increases the importance and value of Enbridge’s own existing and new pipelines.


ENBRIDGE INC....
BOMBARDIER INC. is still a hold. The company (Toronto symbols BBD.A $1.16 and BBD.B $0.93; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.4 billion; Market cap: $2.2 billion; Price-to-sales ratio: 0.4; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) recently delivered two of its long-range Global 7500 aircraft to VistaJet, which sells use of its planes on an hourly basis....
The financial impact of COVID-19 on Fortis and Emera has been modest so far. That’s because they derive a large proportion of their revenue from their regulated power businesses. Both firms are also building new projects that will help them keep raising your dividends.


FORTIS INC....
TELUS CORP. $26 is a buy. The stock (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.3 billion; Market cap: $33.8 billion; Price-to-sales ratio: 2.3; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.telus.com) lets investors tap Canada’s third-largest wireless carrier after Rogers Communications (No....
METRO INC. $58 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 248.4 million; Market cap: $14.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner), in Quebec, Ontario and New Brunswick.


In the past few years, Metro has expanded its e-commerce and home delivery services....