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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 when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
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 61.48% so far this year. Currently paying a dividend of $0.09 per share, the company has a dividend yield of 4.05%. In comparison, the Wireless Non-US industry's yield is 2.75%, while the S&P 500's yield is 1.52%.
Looking at dividend growth, the company's current annualized dividend of $0.77 is up 38.5% from last year. Over the last 5 years, TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis for an average annual increase of 9.24%. 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%, meaning it paid out 18% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, TIMB expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.38 per share, which represents a year-over-year growth rate of 14.05%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. 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 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 when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
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 61.48% so far this year. Currently paying a dividend of $0.09 per share, the company has a dividend yield of 4.05%. In comparison, the Wireless Non-US industry's yield is 2.75%, while the S&P 500's yield is 1.52%.
Looking at dividend growth, the company's current annualized dividend of $0.77 is up 38.5% from last year. Over the last 5 years, TIM S.A. Sponsored ADR has increased its dividend 3 times on a year-over-year basis for an average annual increase of 9.24%. 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%, meaning it paid out 18% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, TIMB expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.38 per share, which represents a year-over-year growth rate of 14.05%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. 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).