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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 26.18% since the start of the year. The company is paying out a dividend of $0.17 per share at the moment, with a dividend yield of 4.26% compared to the Wireless Non-US industry's yield of 2.05% and the S&P 500's yield of 1.66%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.63 is up 75% 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 9.16%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company'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.
Looking at this fiscal year, TIMB expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $0.81 per share, which represents a year-over-year growth rate of 12.50%.
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. But, not every company offers 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. 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 #1 (Strong Buy).
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Are You Looking for a High-Growth Dividend Stock?
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 26.18% since the start of the year. The company is paying out a dividend of $0.17 per share at the moment, with a dividend yield of 4.26% compared to the Wireless Non-US industry's yield of 2.05% and the S&P 500's yield of 1.66%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.63 is up 75% 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 9.16%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company'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.
Looking at this fiscal year, TIMB expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $0.81 per share, which represents a year-over-year growth rate of 12.50%.
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. But, not every company offers 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. 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 #1 (Strong Buy).