That's why I put together this step-by-step Dividends 101 resource. It will walk you through the basics, ensuring that you have a solid foundation before diving into the more practical content in our Ultimate Guide to Dividends and Dividend Investing. By starting here, you'll learn to avoid tax traps such as buying dividend stocks between the ex-dividend date and the distribution date, effectively forcing you to pay other investors' income taxes! You'll also learn why some companies refuse to pay dividends, how to calculate dividend yield, and how to use dividend payout ratios to estimate the maximum sustainable growth rate.
Clear off your desk, grab a pen and notepad, and get a cup of coffee. You're about to embark on a journey that will put you years ahead of other new investors on understanding dividends and the important role they plan in your investment portfolio.
