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Why TIM S.A. Sponsored ADR (TIMB) is a Top Dividend Stock for Your Portfolio
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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 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 66.33%. The company is currently shelling out a dividend of $0.46 per share, with a dividend yield of 4.37%. This compares to the Wireless Non-US industry's yield of 3.4% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.86 is up 54.7% from last year. In the past five-year period, 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%. 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 payout ratio is 18%, which means it paid out 18% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for TIMB for this fiscal year. The Zacks Consensus Estimate for 2025 is $1.37 per share, which represents a year-over-year growth rate of 13.22%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, TIMB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Why TIM S.A. Sponsored ADR (TIMB) is a Top Dividend Stock for Your Portfolio
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 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 66.33%. The company is currently shelling out a dividend of $0.46 per share, with a dividend yield of 4.37%. This compares to the Wireless Non-US industry's yield of 3.4% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.86 is up 54.7% from last year. In the past five-year period, 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%. 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 payout ratio is 18%, which means it paid out 18% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for TIMB for this fiscal year. The Zacks Consensus Estimate for 2025 is $1.37 per share, which represents a year-over-year growth rate of 13.22%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, TIMB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).