Archive: Dividend Definitions
Dividend stocks are great because they pay investors money simply for holding them and when they pay higher dividends than other stocks, they are even better. With the current economic conditions, it is important for investors to find a safe place to put their money. Investors are looking for returns higher than current interest rates [...]
A real estate investment trust, REIT for short, is a security that directly invests in real estate and is sold like stock on major exchanges. The REIT’s investments are made through mortgages, properties, or both. Individuals can invest in a REIT by purchasing shares on an exchange or by making an investment in a mutual [...]
A dividend reinvestment plan, or DRIP, is a plan offered by a dividend stock-bearing company that permits investors to reinvest cash dividends. The money is used to purchase either full or fractional shares of stock on the dividend payment date. DRIPs are great ways to increase the value of the investment. In most DRIPs, investors [...]
Income investing has the goal of investing in companies that deliver steady income streams. This is considered to be one the most straightforward strategies when it comes in to selecting stocks. Commonly, investors think of bonds when they picture fixed income securities. Stocks that pay steady dividends can also provide steady income streams. Though no [...]
The Dividend Achievers is an index comprised of U.S. companies who have increased dividends annually for a minimum of the past ten years. During the past two decades, this index has outperformed the S&P 500 Index annually by one-half of a percentage point. Each year, the index is rebalanced through the deletion of companies that [...]
The Standard & Poor’s 500 Index has a Dividend Aristocrats list that includes companies in the index that have increased their dividends for a 25 consecutive year period. This is quite an achievement, especially in this economy. Investors who have held shares of these stocks over the long-term are usually very happy campers. The companies [...]
Some companies provide their investors with an extra token of appreciation in the form of dividends. These are a portion of company earnings returned to shareholders, as authorized by the company board of directors. There are different ways to pay dividends and dividends take different forms and frequencies. Most companies pay dividends as cash, but [...]
There are many terms used in the investment world and individuals should get a brief education before becoming a player. There are also different investment strategies relevant to short or long-term perspectives. Buy and hold and value investing are two key strategies that every investor should understand. The long-term investment strategy referred to as “buy [...]
We see the large vaults in a bank and think dollar signs. It is important to remember that this money is the account holder’s, not the bank’s. The bank is just “borrowing” the money in the short term and must always allow the account holder to retrieve the cash. Determining the true worth of a [...]
The world of dividend investing has a language all its own. Anyone interested in purchasing dividend stocks should learn the relevant lingo before making an investment. This will pay off in the long run because it enables the individual to make wise investments and not risk losing the rights to dividend payments. Some dividend investors [...]
Dividend Investing 101
Dividend investing is the only way I invest, and here's why: dividend stocks create a secure, passive income, and are less risky than non-dividend investing.
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