All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
TIM S.A. Sponsored ADR in Focus
Based in Rio De Janeiro, TIM S.A. Sponsored ADR (TIMB - Free Report) is in the Computer and Technology sector, and so far this year, shares have seen a price change of -0.76%. The company is currently shelling out a dividend of $0.21 per share, with a dividend yield of 4.62%. This compares to the Wireless Non-US industry's yield of 2.24% and the S&P 500's yield of 1.62%.
Looking at dividend growth, the company's current annualized dividend of $0.85 is up 12.7% from last year. TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 16.61%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, TIM S.A. Sponsored ADR's payout ratio is 56%, which means it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for TIMB for this fiscal year. The Zacks Consensus Estimate for 2024 is $1.29 per share, which represents a year-over-year growth rate of 16.22%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that TIMB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
TIM S.A. Sponsored ADR in Focus
Based in Rio De Janeiro, TIM S.A. Sponsored ADR (TIMB - Free Report) is in the Computer and Technology sector, and so far this year, shares have seen a price change of -0.76%. The company is currently shelling out a dividend of $0.21 per share, with a dividend yield of 4.62%. This compares to the Wireless Non-US industry's yield of 2.24% and the S&P 500's yield of 1.62%.
Looking at dividend growth, the company's current annualized dividend of $0.85 is up 12.7% from last year. TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 16.61%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, TIM S.A. Sponsored ADR's payout ratio is 56%, which means it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for TIMB for this fiscal year. The Zacks Consensus Estimate for 2024 is $1.29 per share, which represents a year-over-year growth rate of 16.22%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that TIMB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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