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!
OCCIDENTAL PETROLEUM CORP....
Your long-term prospects with this stock remain strong....
Spun-off shares often slump when they begin trading. Many investors routinely dump stock they receive in a spinoff....
My view is that you should look beyond short-term setbacks....
As part of that plan, the company is merging its over-the-counter and generic drugs businesses with those of other pharmaceutical firms to form joint ventures....
After decades as an investor writer/analyst/editor/advisor, I launched The Successful Investor in January 1995. Soon after, I began the process of applying to practice as an investment portfolio manager, initially just in Ontario....
Meantime, low oil prices (and resulting low gasoline prices) could, in fact, lower demand for new renewable power projects....
Despite the rapid progression of the Chinese economy and challenges posed by the COVID-19 pandemic, we think U.S. companies will continue to offer ETF investors unparalleled opportunities.
VANGUARD U.S....