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This is Why TIM S.A. Sponsored ADR (TIMB) is a Great Dividend Stock
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
TIM S.A. Sponsored ADR in Focus
Headquartered in Rio De Janeiro, TIM S.A. Sponsored ADR (TIMB - Free Report) is a Computer and Technology stock that has seen a price change of 19.4% so far this year. The company is currently shelling out a dividend of $0.31 per share, with a dividend yield of 4.38%. This compares to the Wireless Non-US industry's yield of 1.65% and the S&P 500's yield of 1.75%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.61 is up 69.4% 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 6.81%. 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. TIM S.A. Sponsored ADR's current payout ratio is 50%. This means it paid out 50% of its trailing 12-month EPS as dividend.
TIMB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $0.76 per share, representing a year-over-year earnings growth rate of 5.56%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that TIMB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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This is Why TIM S.A. Sponsored ADR (TIMB) is a Great Dividend Stock
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
TIM S.A. Sponsored ADR in Focus
Headquartered in Rio De Janeiro, TIM S.A. Sponsored ADR (TIMB - Free Report) is a Computer and Technology stock that has seen a price change of 19.4% so far this year. The company is currently shelling out a dividend of $0.31 per share, with a dividend yield of 4.38%. This compares to the Wireless Non-US industry's yield of 1.65% and the S&P 500's yield of 1.75%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.61 is up 69.4% 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 6.81%. 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. TIM S.A. Sponsored ADR's current payout ratio is 50%. This means it paid out 50% of its trailing 12-month EPS as dividend.
TIMB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $0.76 per share, representing a year-over-year earnings growth rate of 5.56%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that TIMB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).