Archive: Dividend Definitions
Reinvesting dividend payments is a great way to take advantage of compounding and price appreciation. It also eliminates brokerage fees and does not require that the investor have enough money to purchase a full share of stock. When this option is offered by the company that offers the dividends, it is referred to as a [...]
Dividends are considered a form of income and as such, they are subject to federal and state income taxes. Some people feel that this is double taxation because the company paying the dividend has already been subjected to a corporate tax for the money. They argue that since shareholders are part owners of the company, [...]
Receiving a steady dividend payment from an investment is good and getting increased payments year over year is even better. However, the dividend payment may increase to a point where it is no longer a signal of positive things. Investors should know how to identify when this time is approaching so they can figure out [...]
Dividends provide investors with a level of comfort regarding the financial stability of the company. They also yield a stream of income to investors , a factor that makes the act of increasing dividends especially attractive. If a company makes a decision to begin offering dividends, it is often viewed in a favorable light by [...]
Everyone seems to be feeling the pinch from the current economic conditions. Not even large companies are immune as some of them are being forced to cut the portion of company earnings they pay to shareholders as dividends. Cutting a dividend is never a positive thing and it will affect certain financial measurements relevant to [...]
Owning dividend stocks can mean the difference between receiving income when a company is not growing and taking a loss during that period. The cash or stock payments made to shareholders based on a portion of company earnings signify the financial strength of a company. If a company is willing and able to pay out [...]
Purchasing stocks that have dividends is a goal for some investors because they seek a steady stream of income from their investments. They may even go so far as using these payments as their sole source of income during retirement. Therefore, they cross their fingers and hope that the portion of company earnings distributed to [...]
Due to the instability in the economy and volatile stock market fluctuations, some investors are turning their attention to companies that pay dividends. These payments provide investors with income flows even when the company itself is not in a growth phase. They also help to mitigate some of the negative effects of poorly performing stocks [...]
The board of directors of a company determines what portion of company profits to pay to shareholders. It is paid as dividends that take the form of either cash or shares of company stock. Cash dividends may either be taken or reinvested into the company through the purchase of additional shares of stock. A dividend [...]
Some investors have a single strategy and that is to live off the dividends received from investments. If they invest wisely, these portions of company profits paid to them on a regular basis can provide a comfortable lifestyle. However, they should stay away from companies that do things like pay an illegal dividend. An illegal [...]
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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