In its most recent earnings report, the company posted revenue growth of about 2% year over year, with free cash flow improving significantly by 11% as capital spending tapered off. The dividend stock also reaffirmed its commitment to its dividend-growth program. Management has been disciplined in balancing debt reduction with shareholder returns, ensuring that the payout remains sustainable even as interest rates fluctuate. A high-quality company trading at a fair or discounted price offers a double benefit of a strong yield and potential for capital appreciation. Buying during these quiet moments often leads to some of the best long-term returns. The best long-term dividend stocks tend to carry manageable debt and predictable interest expenses.

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U.S. stock markets slid last week, pulled lower in part by trade questions, though job-market concerns and high share valuations, as well as questions about the path forward for interest rates, also played a part. He added, “We are taking in Trillions gross profit of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion. Record Investment in the USA, plants and factories going up all over the place. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.

Is Enbridge’s Ultra-High Dividend Yield Worth the Risk?

The bookkeeping return you’ll earn on a dividend stock is not just its dividend yield. Dividend stocks (and stocks in general) are not equivalent to savings accounts. They’re riskier, and intended for a longer time horizon, although they may offer higher returns in the long run. A dividend is a reward paid to the shareholders for their investment in a company, and it’s usually paid out of the company’s net profits.

• She has a degree in finance, as well as a master’s degree in journalism and an MBA.
• The 15 stocks that made the cut could potentially produce monster returns in the coming years.
• Companies must also consider the requirements of its shareholders when calculating the dividends to pay out to their shareholders.
• We believe everyone should be able to make financial decisions with confidence.

Also Read Direct payment to buy health insurance? What President Trump said about ObamaCare amid government shutdown

Trump said his administration was taking in “trillions of dollars” from tariffs and promised that every American, except high-income earners, would soon receive a $2,000 “dividend” by those revenues. “The $2,000 dividend could come in lots of forms, in lots of ways, George,” Bessent told anchor George Stephanopoulos. “You know, it could be just the tax decreases that we are seeing on the president’s agenda — you know, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans.” “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” he added. Part of the case involves Trump’s April 2 “Liberation Day” tariffs, which impose taxes of between 10% and 50% on most US imports depending on the originating country. Trump says those duties are warranted to address the longstanding national trade deficit.

• For example, if a company declares dividends of $10,000, the accounting treatment will be as follows.
• So is WPP and its chunky dividend yield worth considering right now?
• He promised to reward taxpayers and pay off the US’ national debt as his tariff policy faces a challenge at the Supreme Court.
• They may have other tax implications, and may not provide the same, or any, regulatory protection.
• When a corporation declares a cash dividend, the amount declared will reduce the amount of the corporation’s retained earnings.

Dividend tax rate 2026

In oral arguments earlier this week, the justices seemed skeptical of the Trump administration’s defense and openly worried about whether Trump was usurping power from Congress. The promise of a payout could be seen as an effort to make ending the tariffs politically unpopular. Trump championed several stimulus checks to millions of Americans during the coronavirus pandemic. Trump branded the payments, which totaled $814 billion, with his name. The influx of cash was not enough to overcome the general sentiment about his first term and handling of the pandemic. He lost to President Joe Biden, who issued one more stimulus payment.

REITs like RioCan and Slate Grocery offer a simple, hands-off way to turn your TFSA into a monthly dividend income engine. With strong yields, defensive appeal, and consistent distributions, they are ideal for long-term investors seeking lifetime income. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people around the world achieve their financial goals through our investing services and financial advice. Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer. Finally, dividend income often gets a more favorable tax treatment than savings account interest.

You will not have to pay taxes or any penalty on contributions made to the IRA because that money was taxed prior to making that contribution. If you’re an investor, you might be familiar with dividends, which are shares of a company’s profits that are distributed to shareholders. But if you are paid dividends, be aware they aren’t free money — they’re usually taxable income. Dividends are also an important source of income for most shareholders. The first class of shareholders is those who look for dividend returns from their investments. The other class of shareholders is those who require capital gain returns from their investments.

Wall Street’s Most Accurate Analysts Weigh In On 3 Real Estate Stocks With Over 8% Dividend Yields

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• Although cash dividends are common, dividends can also be issued as shares of stock.
• Canadian investors seeking a reliable source of passive income could consider investing in dividend stocks.
• These techniques rely on anticipated future dividend streams to value shares.
• Special exceptions can include disability, first-time home purchase, and some other qualified exceptions.
• His administration has maintained that it is working through an inflation challenge caused by former President Joe Biden, and has asserted that tariffs have not contributed to inflation.
• Earlier this year, he announced a baseline 10% tariff on all imports, followed by country-specific duties that rise as high as 30%.

Investors: How to Turn $20K Into a Cash Flow Machine

Even in a period of higher loan losses and cautious consumer spending, BMO continues to generate robust earnings thanks to its cost controls and diversified revenue streams. Enbridge has been one of the Canadian dividend stocks I’d put in the stalwart bucket, having raised its dividend for 30 consecutive years. As the energy sector continues to regain strength, Gibson’s focus on core infrastructure, cost efficiency, and long-term contracts could keep this income machine running strong for years to come. That’s why GEI stock could be a great buy for long-term investors, especially at current levels. Moreover, TC Energy also benefits from a diversified power generation portfolio.

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If you want passive income that lasts, look to companies offering essential services and growing dividends. These two dividend stocks might not be the most exciting, but the income you can create certainly is. In fact, here’s how much $7,000 invested in each dividend stock could bring you. After declining by nearly 6% so far in 2025, GEI stock currently trades at $22.66 per share with a market cap of $3.7 billion.