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 market downturn has hit the technology sector particularly hard, as higher interest rates prompt businesses and consumers to cut their spending on new computers and software. Even so, we feel IBM and Intel’s latest moves will help protect their current dividend rates.
INTERNATIONAL BUSINESS MACHINES CORP....
CHEVRON CORP. $175 is a buy. The company (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $332.5 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
TC ENERGY CORP. $55 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $55.0 billion; Dividend yield: 6.5%; Dividend Sustainability Rating: Highest; www.tcenergy.com) operates a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S....
The shares of these two U.S. banks continue to rebound from their pandemic lows. Even though a slowing economy is forcing them to bolster their loan reserves, they remain well capitalized. That should let them return more cash to shareholders.
J.P....
H&R REAL ESTATE INVESTMENT TRUST $12 is a buy. The REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 265.9 million; Market cap: $3.2 billion; Distribution yield: 5.0%; Dividend Sustainability Rating: Average; www.hr-reit.com) spun off most of its retail properties to Primaris REIT (see below) in January 2022.
The spinoff is part of H&R’s strategy to focus on its more-promising residential and industrial properties in Toronto, Montreal, Vancouver, and the U.S....
For a number of reasons, we think DRIPs are a good way for investors to slowly build wealth over a long period of time.
First, DRIPs eliminate the nuisance effect of receiving small cash-dividend payments.
Second, some DRIPs let you buy shares from your reinvested dividends at a 2% to 5% discount on the current share price.
Third, many DRIPs also allow you to buy additional shares on a monthly or quarterly basis without paying commissions.
Keep in mind, though, that while there is no harm in participating in a DRIP, too many investors select their investment ideas solely on the basis of the existence of the DRIP option.
We think the availability of a DRIP is only a bonus, rather than a reason to invest by itself....