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TIM S.A. Sponsored ADR (TIMB) Could Be a Great Choice
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 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
TIM S.A. Sponsored ADR (TIMB - Free Report) is headquartered in Rio De Janeiro, and is in the Computer and Technology sector. The stock has seen a price change of 53.74% since the start of the year. Currently paying a dividend of $0.46 per share, the company has a dividend yield of 4.73%. In comparison, the Wireless Non-US industry's yield is 2.74%, while the S&P 500's yield is 1.53%.
In terms of dividend growth, the company's current annualized dividend of $0.86 is up 54.7% from last year. Over the last 5 years, TIM S.A. Sponsored ADR has increased its dividend 2 times on a year-over-year basis for an average annual increase of 9.28%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. TIM's current payout ratio is 18%. This means it paid out 18% of its trailing 12-month EPS as dividend.
TIMB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $1.37 per share, which represents a year-over-year growth rate of 13.22%.
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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TIM S.A. Sponsored ADR (TIMB) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 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
TIM S.A. Sponsored ADR (TIMB - Free Report) is headquartered in Rio De Janeiro, and is in the Computer and Technology sector. The stock has seen a price change of 53.74% since the start of the year. Currently paying a dividend of $0.46 per share, the company has a dividend yield of 4.73%. In comparison, the Wireless Non-US industry's yield is 2.74%, while the S&P 500's yield is 1.53%.
In terms of dividend growth, the company's current annualized dividend of $0.86 is up 54.7% from last year. Over the last 5 years, TIM S.A. Sponsored ADR has increased its dividend 2 times on a year-over-year basis for an average annual increase of 9.28%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. TIM's current payout ratio is 18%. This means it paid out 18% of its trailing 12-month EPS as dividend.
TIMB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $1.37 per share, which represents a year-over-year growth rate of 13.22%.
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).