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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BANK OF MONTREAL, $146.32, Toronto symbol BMO, is still a buy.

With the February 2025 payment, the bank will raise your quarterly dividend by 2.6%, to $1.59 a share from $1.55. The new annual rate of $6.36 yields a high 4.3%. Bank of Montreal also announced a new plan to buy back up to 20 million of its common shares (2.7% of the total outstanding).

On February 1, 2023, the bank completed its acquisition of Bank of the West from France’s BNP Paribas for $13.8 billion U.S

Bank of the West provides a variety of retail and commercial banking services to over 1.8 million customers in 24 U.S....
INTEL CORP., $20.92, Nasdaq symbol INTC, is now a hold.

The stock fell 15% this week after the computer chip maker announced that Pat Gelsinger has retired as its chief executive officer and as a director.

Chief financial officer David Zinsner and Michelle Johnston Holthaus, general manager of Intel’s client computing group, will serve as interim co-CEOs.

Under Gelsinger, Intel began a multi-year plan in 2021 to improve its technical expertise and expand its ability to make chips for other companies....
TORONTO-DOMINION BANK, $73.51, Toronto symbol TD, remains a buy for patient, income-seeking investors.

The bank recently settled charges over lapses in the anti-money laundering processes at its U.S. retail banking operations. As a result, it paid a fine of $3.09 billion U.S.

The settlement also imposed an asset cap on TD’s U.S....
Companies that pay regular and growing dividends have performed very well over time when compared to the broad market indices.


A strategy such as selecting stocks with a long history of uninterrupted dividend growth—as represented by the S&P 500 Dividend Aristocrats—has resulted in gains of 11.8% per year over the past 30 years; this compares to 10.9% for the S&P 500 Index....
This month we highlight the Canadian listing of a very popular U.S. ETF from JP Morgan, as well as another listing of a “quality equity” fund from BMO.


JPMorgan US Equity Premium Income Active ETF $26.61 (Toronto symbol JEPI) invests in the shares of U.S....
The U.S. has been the leading economy in the world for many decades, and the stock market has outperformed international markets for the past 15 years. Despite the challenges posed by its big deficits, plus uncertainty posed by the upcoming Trump administration’s policies, top U.S....

Dividend-paying companies have done well over the longer term, although the recent performance of this group lagged the main market indexes. That’s because higher interest rates on fixed-income investments made their dividends less attractive to income investors....
VANGUARD FTSE DEVELOPED ALL CAP EX NORTH AMERICA ETF $35.16 (Toronto symbol VIU; TSINetwork ETF Rating: Aggressive; Market cap: $4.7 billion) tracks the FTSE Developed All Cap ex-North America Index. The index includes large, medium, and smaller companies listed in developed markets.


Financial Services make up 19% of the portfolio, followed by Industrials (18%), Healthcare (12%), Technology (11%), and Consumer Discretionary (11%)....
Global military spending reached an all-time high of $2.44 trillion U.S. in 2023, spurred by major regional wars and large-scale investments by several countries. That spending might slow in the coming years as governments are forced to re-examine their military budgets in the wake of massive stimulus spending to deal with COVID-19....
ADF Group just reported 51.8% higher earnings with key projects including the second construction phase of a pharmaceutical company’s facilities in the U.S. Midwest.