Dividend

Gordon Growth model is based on the concept of dividend growth in the future. If the company does not make some significant breakthrough/unexpected growth or faces some extreme misfortune, then the growth depends on doing more for the same work. For instance, if the company has four retail outlets, it needs to expand from 4 […]

The announcement of dividends is one of the board of directors’ essential decisions to execute strategic and operational aspects of the Company. So, it’s important to manage the expectations of the shareholders and the Company’s needs for the financing. It’s not always the case that shareholders want higher dividends as their priority may be capital

Overview When you own dividend stocks, it’s important to understand the dividend dates. Dividend announcements and changes can impact stock prices as well. Many investors look to make quick profits with changes in stock prices around the ex-dividend date through dividend capture. Investors of mutual funds and ETFs receive periodic payments as well. Hence, a

A company’s dividend payout ratio is a key performance metric. How you can calculate it and what is a good dividend payout ratio? Is a payout above 100% good or bad? The dividend ratio defines the profit amount distributed as dividends out of the total earnings. Investors consider the payout ratio as a key performance

A company’s dividend policy suggests the payout frequency, amount, and timings of the dividends paid out to its shareholders. Income-oriented investors are particularly keen on knowing a company’s dividend policy. There are four types of dividend policies. Each type of policy offers its pros and cons to shareholders and the company. Proponents of dividend irrelevancy

Overview A dividend yield is an important financial ratio that tells us how much a company pays out in dividends as compared to its market share price. It is calculated in percentage terms and offers insights into return for investors as compared to a share’s market price. Investors and analysts can use the dividend yield

Overview A dividend reinvestment plan refers to a reinvestment plan where shareholders have the option of reinvesting cash dividends into underlying stocks they hold. A dividend reinvestment plan DRIP for short thus provides a flexible option of buying more stocks to the existing shareholders without paying brokerage fees or commission. A DRIP comes with several

Overview Shareholders and investors use fundamental analysis to analyze the performance of a company. Dividend Yield and Payout are two important metrics in the fundamental analysis. Often, both of these measures are considered in conjunction along with other key financial ratios. Dividend yield and payout are both related to the dividend paid to shareholders. However,

Overview When companies make profits, they share a proportion of those profits that they are generating during the period with their shareholders. These shared profits are called dividends. Most companies reward their shareholders through dividends. However, not all companies share the profits that they are generating with their shareholders. Stock dividends come in different types.

Overview Dividend reinvestment plans or DIPs offer great compounding investment benefits to shareholders. You can take out all of the dividends offered by a company in cash. A DRIP lets you reinvest all or some of the dividends back into the stocks you already hold. Dividend reinvestment plans are offered by a company itself directly