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Why TIM S.A. Sponsored ADR (TIMB) is a Great Dividend Stock Right Now
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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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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
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 28.33%. The company is currently shelling out a dividend of $0.4 per share, with a dividend yield of 4.18%. This compares to the Wireless Non-US industry's yield of 1.63% and the S&P 500's yield of 1.66%.
In terms of dividend growth, the company's current annualized dividend of $0.63 is up 75% from last year. In the past five-year period, TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis 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. Right now, TIM S.A. Sponsored ADR's payout ratio is 50%, which 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 $0.81 per share, which represents a year-over-year growth rate of 12.50%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Why TIM S.A. Sponsored ADR (TIMB) is a Great Dividend Stock Right Now
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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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
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 28.33%. The company is currently shelling out a dividend of $0.4 per share, with a dividend yield of 4.18%. This compares to the Wireless Non-US industry's yield of 1.63% and the S&P 500's yield of 1.66%.
In terms of dividend growth, the company's current annualized dividend of $0.63 is up 75% from last year. In the past five-year period, TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis 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. Right now, TIM S.A. Sponsored ADR's payout ratio is 50%, which 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 $0.81 per share, which represents a year-over-year growth rate of 12.50%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).