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 continue to like the outlook for all three, particularly as the second wave of COVID-19 continues to spur demand for personal computers and other electronic equipment....
“Early in my investment career, I developed a keen interest in what we called “investor rules of thumb.” Here are some random examples:
“Stocks trading at a P/E ratio of 10 times per-share earnings or less are good buys.”
“As January goes, so goes the year.” In other words, if the stock market goes up in January, it will probably have a gain for the year, as a whole.
“When a stock rises and its volume of trading expands as well, it’s likely to keep rising.”
The downfall of all market indicators is that they entice you into basing a decision on a narrow range of information....
All three of these picks have held up well during the COVID-19 pandemic. They’re poised to move even higher as the rollout of new vaccines lets more parts of the economy re-open....
PROCTER & GAMBLE CO....
Newell last raised its quarterly dividend with the June 2017 payment....
With the March 2021 payment, Archer Daniels will raise its quarterly dividend by 2.8%....
Like other top industrial stocks, Genuine and Stanley have strong balance sheets to help them cope with economic shocks during the COVID-19 pandemic. Moreover, that stability should spur more dividend hikes for Genuine and Stanley investors in 2021 as the pandemic eases.
GENUINE PARTS CO....
GREAT-WEST LIFECO INC. $30 is a hold. The company (Toronto symbol GWO; Conservative Growth Payer Portfolio, Finance sector; shares outstanding: 927.9 million; Market cap: $27.8 billion; Dividend yield: 5.8%; Dividend Sustainability Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial....