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.
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In September 2025, Dick’s completed its acquisition of Foot Locker Inc. (New York symbol FL), a leading footwear and apparel retailer, for $2.4 billion in cash and shares.
The acquisition provides Dick’s with a global platform for growth. Foot Locker’s store banners include Foot Locker, Kids Foot Locker, Champs, and others. The retailer has 2,400 stores across 20 countries, including the U.S., Canada, the U.K., Australia, and New Zealand.
Combining the two firms’ purchasing power and operations should also cut Dick’s annual costs by $100 million to $125 million. However, the retail industry is intensely competitive, and the uncertainty over tariffs adds risk.
Dick’s Sporting Goods is a hold.
