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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.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 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 28.4%. The company is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 4.05% compared to the Wireless Non-US industry's yield of 2.32% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.61 is up 9.7% from last year. TIM S.A. Sponsored ADR has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 17.18%. 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. TIM's current payout ratio is 60%. This means it paid out 60% 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 many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. 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 #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 when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 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 28.4%. The company is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 4.05% compared to the Wireless Non-US industry's yield of 2.32% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.61 is up 9.7% from last year. TIM S.A. Sponsored ADR has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 17.18%. 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. TIM's current payout ratio is 60%. This means it paid out 60% 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 many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. 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 #2 (Buy).