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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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!

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Oil giant Chevron recently won U.S. regulatory approval for its deal to buy smaller rival Hess Corp. While expanding by acquisition adds risk, the new operations will add several promising properties to Chevron’s reserves. The extra cash flow will also let the oil giant keep raising your dividend—something it’s done each of the past 37 years.


CHEVRON CORP....
ALCOA CORP. $37 is a buy. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 258.3 million; Market cap: $9.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.1%; TSINetwork Rating: Extra Risk; www.alcoa.com) is a leading producer of bauxite ore, with mines in Australia, Brazil and West Africa....
NEWELL BRANDS INC. $10 remains a hold. The company (Nasdaq symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 416.0 million; Market cap: $4.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.8%; TSINetwork Rating: Average; www.newellbrands.com) makes a wide range of consumer and household products such as PaperMate pens, Elmer’s glue, Rubbermaid food containers, Graco baby strollers, Coleman camping gear and Oster kitchen appliances.


In the quarter ended September 30, 2024, revenue declined 4.9%, to $1.95 billion from $2.05 billion a year earlier....
SHERWIN-WILLIAMS CO. $349 is a hold. The paint maker (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 251.9 million; Market cap: $87.9 billion; Price-to-sales ratio: 4.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.sherwin-williams.com) reported 0.7% higher sales in the three months ended September 30, 2024, to $6.16 billion from $6.12 billion a year earlier....
ARCHER DANIELS MIDLAND CO. $50 is a hold. The company (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 478.1 million; Market cap: $23.9 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other crops into a variety of food ingredients such as flour, oils and sweeteners.


With the February 2024 payment, Archer raised your quarterly dividend by 11.1%, to $0.50 a share from $0.45....
These two firms are cutting costs, which will help them cope as consumers shift away from processed foods. Those savings will let them improve the quality of their products, and protect their dividends.


CAMPBELL’S CO. $42 is a buy. The company (Nasdaq symbol CPB; Conservative-Growth Payer Portfolio, Consumer sector; Shares outstanding: 298.1 million; Market cap: $12.5 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Above Average; www.thecampbellscompany.com) recently changed its name from Campbell Soup Co....

CHEVRON CORP. $144 is a buy. The integrated oil producer (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $259.2 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.chevron.com) raised your quarterly dividend by 7.9% with the March 2024 payment....
These two firms mainly serve clients in highly cyclical industries such as mining and construction. However, their high-quality businesses will let them continue their long record of annual dividend hikes.


FINNING INTERNATIONAL INC. $37 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 139.5 million; Market cap: $5.2 billion; Dividend yield: 3.0%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada but also Chile, Argentina, Bolivia, the U.K....

The U.S. Federal Reserve continues to cut its benchmark interest rate as inflation eases. That is letting these two banks cut their loan provisions, which is lifting their earnings. Lower rates should also help spur demand for new loans. That will give them even more room to keep raising their dividends.


J.P....
H&R REAL ESTATE INVESTMENT TRUST $9.42 is a buy. The REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 262.0 million; Market cap: $2.5 billion; Distribution yield: 6.4%; Dividend Sustainability Rating: Average; www.hr-reit.com) owns 377 residential, industrial, office and some retail properties in Canada and the U.S....