Guide to Dividends
Interested in dividends or dividend investing? Does the idea of collecting checks for the rest of your life, generating passive income sound appealing? Do you wonder how a company determines the total dividend payout? This ultimate guide to dividends was designed to help answer all of your questions, walk you through the basics step-by-step,...
Dividend Reinvestment Programs, or DRIPs, Could Be Your Portfolio's Best Friend
You might have heard of DRIPs, or dividend reinvestment plans (sometimes called dividend reinvestment programs). These special accounts are a way to buy stock directly from a company instead of through a broker. They can save you a lot of money in the long-run. Here is the run down on why they might be a good choice for your investment...
Finding the Highest Dividend Stocks for Your Portfolio
Finding the highest dividend stocks can be difficult, especially if you want to protect yourself from dividend cuts and other dangers. Here are some things you may want to consider when putting together an investment portfolio of the highest dividend stocks.
Don’t Join the Capital Gains Cult
A common mistake of new investors is to focus on capital gains instead of cash dividends, especially in light of research that shows that 99 percent of after inflation gains in wealth come from reinvested cash dividends. In this article, you'll see why focusing on total return is a better choice for new investors than obsessing over capital gains.
Using Dividend Changes for Big Capital Gains
There is a way to take advantage of changes in the dividend payout ratio to generate big gains in the stock market. In this resource, you'll discover how changes in the dividend payout ratio can result in fluctuations in the underlying stock price that you can take advantage of through intelligent trading.
Use This Crisis as a Chance to Drastically Lower Your Cost Basis
You can lower your cost basis through dollar cost averaging and reinvested dividends. According to the work of Jeremy Siegel, this lower cost basis will allow you to generate higher profits if and when your shares return to the original purchase price, giving you a much higher net worth.
Watch Out for the Dividend Trap
There are times when stocks fall faster than earnings and appear to have high dividend yields and low p/e ratios but are really experiencing what is known as valuation lag. The result is investors get caught in a value trap, buying stocks that look cheap but aren't nearly as attractive as they believed.
Real Life Investing: A Glimpse Into My Dividend Portfolio
We’ve often talked about the importance of reinvesting your dividends and how, over the long-term, it can lead to a dollar cost average effect and help you grow more wealth. I thought it would be useful to provide a real-life example from one of my very own personal retirement accounts. The power of the About.com model is that we can bring you content from those who are actually doing and living what we are writing about, so take a moment to peer into my own personal accounts.
What an Ice Cream Factory Can Teach You About Stocks
After visiting an ice cream factory known as the Blue Bell Creamery in Texas, I began to think about how business owners often manage their enterprises better than the average investor handles their portfolio. There are several lessons that can be taken for the average guy and professional alike when buying or selling stock certificates ...
Why Dividend Paying Stocks Tend to Fall Less During Bear Markets
There are four major reasons that dividend stocks fall less during bear markets. These guidelines will help you understand why some investors find dividend paying stocks more attractive and less risky than their non dividend paying stock counterparts.
All About Dividends - Declaration, Ex-Dividend Date, Date of Record, Cash and Property Dividends
A company's Board of Directors declares a dividend and establishes a date of record (the ex-dividend date) and a payment date. The dividend can take several forms including cash, stock or property.
Why Boring is Almost Always More Profitable
Recently, I began to read Jeremy Siegel’s new book, The Future For Investors: Why the Tried and True Triumph Over the Bold and the New. As you can imagine, I’ve read a lot of finance, accounting, investing, business, and management books in my life as well as written one myself. It is no exaggeration to say that I think Siegel’s most recent treatise may be one of the most important books penned on the topic of portfolio management in the past twenty years.
Cash Dividends vs. Share Repurchases
Which is better for your portfolio as an investor - cash dividends or share repurchases designed to increase earnings per share? This article discusses the pros and cons of dividends and share repurchases and can help empower you to make an informed decision.
When Searching for Dividend Paying Stocks, Dividend Yield Isn't All That Matters
If you invest for income, the dividend yield isn't all that matters. General Motors, for example, has announced that it will cut its annual dividend by more than fifty percent.
About Reinvested Dividends
Read this article about DRIPs and the unbelievable power they can have over your portfolio.
The DRIP Investor
Countless articles over dividends and the companies that offer them. This is great information and I highly recommend reading it.
Why Do Stocks That Don't Pay Dividend Have Any Value?
New investors sometimes want to know how a company that doesn't pay cash dividends to the owners can have any value at all? Are non-dividend paying stocks merely Ponzi schemes, depending solely upon the value the next investor is willing to pay? No. This extraordinary explanation will explain why non-dividend paying stocks can still offer tremendous value for shareholders.
Dividends 101 - Your Complete Introduction to Dividends and D…
This dividends 101 step-by-step guide is your complete introduction to dividends, dividend investing, and much more. You'll discover why dividends are important to your portfolio, the process of how a company pays dividends out to its shareholders, learn about rare types of dividends such as property dividends and liquidating dividends, and...
Investor's Guide to the Dividend Tax
When you buy a stock, the odds are good that you will end up paying a dividend tax on the earnings that are distributed to you. Depending upon how long you've owned your shares, the dividend tax you pay will vary. This guide to the dividend tax was designed to help new investors understand what it is, the tax rates, and how it is calculated.
How a Small Business Owner Can Make $10 Million by Investing
A small business owner can build wealth by investing a small amount of money regularly and letting compounding do the heavy lifting. To illustrate the concept, I wrote this parable about a Dairy Queen franchise owner who sets aside money to buy shares of Hershey Foods.
Two of the Top Dividend ETFs Make Diversified Dividend Investing Easy
Dividend lovers can rejoice because iShares has created two major low-cost exchange traded funds (ETFs), or dividend ETFs, designed to let investors buy a block of dividend paying common stocks by purchasing a single security through their stock broker. That means instant diversification with only one brokerage commission, making passive income...
More Reasons I Love Dividend Reinvestment Plans or DRIPs
You can invest in your favorite stocks with little or no brokerage commission by taking advantage of dividend reinvestment plans or DRIPs. These special programs, which are offered by many companies, let you buy shares of stock and reinvest your dividends directly through a company's transfer agent instead of using a stock broker, saving you...
What Is Dividend Investing?
Dividend investing is a special type of investing strategy that involves buying a collection of stocks with high dividend yields. Typically, dividend investors only want stocks with dividends that are considered "safe" and have a lot of earnings, or profits, to cover the payouts. Dividend investing is especially popular among retirees or...
Making Money from Dividends
Making money from dividends is one of the basic foundations of good investing. Too often, new investors don't really understand what dividends are, how dividends work, and how you can make money by investing in dividend stocks. This basic guide was put together to help you understand how making money with dividends is possible.
Strategies For Creating Monthly Income
When creating a portfolio for passive income, there are several ways you can create monthly income that turns your money into a stream of checks deposited automatically in your bank or brokerage account. Some popular options include MIPS, QUIPS, and dividend stocks.
Dividend Tax Rates Might Increase from 15% to 43.4% on January 1st, 2013
Could dividend tax rates increase from 15% to 43.4% as early as 2013? Possibly, unless Congress and the President act to protect dividend investors from getting destroyed.