Dividends can produce as much as a third of your total return over long periods, and you can even retire on dividends.
There are 4 key stock dividend dates that are involved with dividend payments:
1- The Declaration Date is several weeks in advance of a dividend payment—it’s when company’s board of directors sets the amount and timing of the proposed payment.
2- The Payable Date is the date set by the board on which the dividend will actually be paid out to shareholders.
3- The Record Date is for shareholders who hold the stock before the payable date and receive the dividend payment. That date is set any number of weeks before the payable date.
4-The Ex-Dividend Date is two business days before the record date and it’s when the shares begin to trade without their dividend. If you buy stocks one day or more before their ex-dividend date, you will still get the dividend. That’s when a stock is said to trade cum-dividend. If you buy on the ex-dividend date or later, you won’t get the dividend. The ex-dividend date is in place to allow pending stock trades to settle.
We think very highly of stocks that have been paying dividends for five or more years, at TSI Network. Many of these stocks fit in well with our three-part Successful Investor philosophy:
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; and Utilities);
3- Downplay or avoid stocks in the broker/media limelight.
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The company pays a monthly dividend of $0.0367 U.S....
The company paid a $4.00-a-share special dividend in March 2016....
Our TSI Dividend Sustainability Ratings system relies on eight factors to determine a company’s ability to maintain its dividend, and increase it over time.
Brokers often use “hold,” “reduce” and “source of cash for new buying” as euphemisms for “sell.” That’s because they don’t want to offend potential underwriting or corporate-finance clients....
We like both stocks, but income-seeking investors should pick Canadian Utilities for its higher payout. Value seekers, on the other hand, should buy the parent, ATCO, for its holding company discount.
CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $37 and CU.X [class B voting] $37; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 268.1 million; Market cap: $9.9 billion; Dividend yield: 3.9%; Dividend Sustainability Rating: Highest; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia....
Dream Office REIT lowered its monthly distribution by 33.0% with the March 2016 payment, to $0.125 from $0.1867....
Likewise, it’s important to pick REITs that have a broad exposure to many different regions.
Remember to look for REITs that don’t rely on a single tenant for more than, say, 10% of their rental income....