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!
HEWLETT-PACKARD ENTERPRISE CO. $22 is a hold. This firm (New York symbol HPE; Manufacturing sector; Shares outstanding: 1.3 billion; Market cap: $28.6 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.hpe.com) agreed to acquire Juniper Networks Inc....
In October 2023, the old Kellogg Co....
In November 2016, Yum Brands set up its Chinese operations as Yum China and gifted its investors with shares in the new company. Specifically, investors received one share of the new firm for each YUM share they held.
Both stocks continue to rebound from pandemic closures, partly due to their successful digital ordering platforms that speed up service and encourage higher spending per visit....
LKQ stands for “Like, Kind & Quality.” That’s a term for recycled or refurbished replacement parts that are acceptable to insurers in auto claims.
LKQ has now placed two nominees, one each from activist investors Ancora Catalyst and Engine Capital, on its board of directors....
We pay close attention to activist investors, as they tend to target undervalued companies that could boost their value with asset sales or spinoffs. However, we see better opportunities than these three activist targets (including box).
UBER TECHNOLOGIES INC....
That decline is largely due to fears that new GLP-1 weight loss drugs, such as Ozempic, will cut demand from diabetics (many of whom are overweight) for embecta’s insulin products.
The company is now re-focusing its businesses, including discontinuing an insulin patch product that would have limited commercial viability....
In April 2022, the company spun off its Diabetes Care business as embecta (see page 19)....
The company’s customers operate in cyclical industries, which adds to its risk....