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!
Investors are now turning their attention to stocks that should thrive as the world attempts to prevent a resurgence of COVID-19. Those investments include medical device suppliers Baxter and Becton Dickinson. Both firms are developing COVID-related products....
United Technologies gifted its investors with two spinoffs following its April merger with Raytheon Co. For each UTX share they held, investors received 0.5 of a share in Otis (elevators) and 1 share in Carrier (heating and air conditioning equipment).
We’re confident these two spinoffs will move higher for you in the next few years....
MOTOROLA SOLUTIONS INC. $139 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.7 million; Market cap: $24.4 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles, as well as high-definition surveillance systems.
The company recently acquired IndigoVision....
While COVID-19 forced McDonald’s to close most of its outlets to dine-in customers, about 95% of its stores continue to operate by offering drive-thru and home delivery service....
These three technology stocks, like Microsoft (see page 61), have held up well during the COVID-19 crisis. We feel IBM and Intel will continue to gain from the current work-from-home trend. Apple will, too. Still, its reliance on consumer sales raises its risk if a second wave of the virus forces it to shut down stores.
APPLE INC....
Looking beyond COVID-19, we feel the stock can move higher....
