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!
Companies that pay regular and growing dividends have performed very well over time compared to broad market indices.
A simple strategy capitalizing on that is to select ETFs holding stocks with a long history of uninterrupted dividend growth such as represented by the S&P 500 Dividend Aristocrats....
Based on lots of things we’re looking at, we’re still reasonably sure that stock and ETF prices will be higher in a year or two than they are today. But the market rarely goes straight up or down. Instead we should expect a series of abrupt movements in either direction.
That volatility is all the more reason for conservative investors to keep a high proportion of their holdings in dividend-paying stocks—or ETFs that hold those stocks.
The best dividend stocks provide a consistent dividend yield year after year....
The HORIZONS ENHANCED INCOME GOLD PRODUCERS ETF $37.00 (Toronto symbol HEP) invests in an equal-weighted portfolio of North American-listed gold mining companies. The portfolio currently holds 14 stocks, with all the top producers such as Barrick Gold and Newmont Corp....
TRANSCONTINENTAL INC....
BCE INC. $56 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 903.9 million; Market cap: $50.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.bce.ca) has now launched 5G wireless service in Toronto, Montreal, Calgary, Edmonton and Vancouver.
5G (fifth generation) wireless technology is up to 100 faster than the current 4G LTE networks....