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!
We keep an eye on the actions of activist investors; like us, they seek out companies with undervalued assets that they can sell or spin off to boost their value. However, looking at GameStop and Bausch, we don’t share the enthusiasm of their prominent activists.
GAMESTOP CORP....
McDonald’s recently announce that it is considering selling or spinning off part of Dynamic Yield, a software firm using artificial intelligence to boost customer sales.
A successful IPO could also prompt McDonald’s to consider spinning off more of its businesses, such as its international operations....
NORTONLIFELOCK INC. $21 is a buy. The company (Nasdaq symbol NLOK; Consumer sector; Shares outstanding: 581.9 million; Market cap: $12.2 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.nortonlifelock.com) is the newly renamed Symantec following the sale of its Enterprise Security business to Broadcom (Nasdaq symbol AVGO) for $10.7 billion.
NortonLifeLock is now focused on expanding its consumer business to lift investor returns....
H&R REIT says it wants to raise its unit price to narrow the gap between it and the REIT’s net asset value (NAV) per unit. As of December 31, 2020, NAV—the market value of its properties less any mortgage liabilities—stood at $21.93.
As we often remind investors, one of the best ways for a company to unlock hidden or under-appreciated value is through its breakup into one or more pure-play businesses.
That kind of spinoff plan appears to be in the early stages for H&R as it waits for COVID-19 lockdowns to ease and rent collection to improve....
Those top companies also have the balance sheet strength to survive, even if energy prices drop, and to continue paying dividends....
GOODYEAR TIRE & RUBBER $17.90 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 233.3 million; Market cap: $4.0 billion; No dividends paid) is one of the world’s largest tire makers....
BROADRIDGE FINANCIAL SOLUTIONS $146.75 (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 115.8 million; Market cap: $17.1 billion; Dividend yield: 1.6%) serves the investment industry in three main areas: investor communications, securities processing, and transaction clearing.
In its fiscal 2021 second quarter, ended December 31, 2020, revenue rose 8.9%, to $1.05 billion from $968.7 million a year earlier....
ALTAGAS LTD....
Meanwhile, Electronic Arts is acquiring a mobile games leader to quickly gain a big share of the fastest-growing segment of the videogame market....