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!
B&G FOODS INC. $29 is a hold. The company (New York symbol BGS; Consumer sector; Shares outstanding: 64.3 million; Market cap: $1.9 billion; Dividend yield: 6.5%; Takeover Target Rating: Highest; www.bgfoods.com) makes prepackaged food and household products in the U.S....
One of the big drivers of interest in spinoffs is that they create companies focused on a single business. Investors prefer these “pure-play” firms as they are easier to evaluate as potential takeover targets. Even without those kind of offers, we expect shares of Synnex and its new spinoff, Concentrix, to push higher.
SYNNEX CORPORATION $83 is a spinoff buy. The company (New York symbol SNX; Manufacturing sector; Shares outstanding: 51.5 million; Market cap: $4.3 billion; Dividend suspended in March 2020; Takeover Target Rating: Medium; www.synnexcorp.com) provides a range of distribution, logistics and integration services for the technology industry....
Now that uncertainty over the COVID-19 pandemic is starting to fade, companies are once again pursuing spinoffs as a way to increase shareholder value. Below, we look at one recently completed spinoff, and one that may occur in the next few months.
The old AARON’S INC. (New York symbol AAN) sells furniture and electronics through more than 1,500 company- and franchisee-owned stores in 46 U.S....
CHEMOURS CO. $27 is a buy for aggressive investors. The company (New York symbol CC; Manufacturing & Industry sector; Shares outstanding: 164.5 million; Market cap: $4.4 billion; Takeover Target Rating: Highest; Dividend yield 3.7%; Takeover Target Rating: Highest; www.chemours.com) makes a variety of chemicals, including titanium dioxide (TiO2), a popular pigment; refrigerants and Teflon coatings; and chemicals for gold production, water treatment and other industrial uses.
Chemours began trading in July 2015 after DuPont (New York symbol DD) spun off the company....
DOREL INDUSTRIES INC. $14.40 is a hold. The company (Toronto symbol DII.B; Consumer sector; Shares outstanding: 32.5 million; Market cap: $468.0 million; No dividend paid; Takeover Target Rating: Highest; www.dorel.com) makes ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, toddler beds and cribs; and bicycles and other sporting goods.
Dorel recently accepted a $14.50-a-share takeover offer presented by a group led by U.S....
We often remind readers to pay attention to activist investors. That’s because they tend to look for the same kind of hidden assets we value. A firm can spin off or sell them to boost shareholder value. Here are two stocks that will benefit from activist pressure, but we see only one as a buy.
F5 NETWORKS INC....
Hardwoods Distribution operates a North American network of 62 distribution centres, operating under three industry-leading distribution brands: Hardwoods Specialty Products; the Frank Paxton Lumber Company; and Rugby Architectural Building Products....
We added Broadridge to our recommendations in the February 2008 issue of Wall Street Stock Forecaster as a buy at $22 a share....
