Equity research is all about producing reports. These reports are targeted towards investors to provide the financial analysis that would enable them to choose what investment to buy, sell, or hold. Equity research is also used to provide timely analysis and quality news, which in most cases is used by financial institutions as a means …
How Do Equity Research Firms Make Money? And Who are They? Read More »
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 …
What is Gordon’s Model of Dividend Policy? (Formula, Example, Calculation, and More) Read More »
Definition: Portfolio Immunization is a strategy that is used to manage your portfolio with a financial goal. This goal can be determined with your investment to a specific amount or at a certain point. Further, this strategy is used to fund a future liability. Immunization is one of two kinds of dedicated portfolio strategies. Understanding …
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 …
What Are the Factors Affecting Dividend Policy of the Company? (Explained) Read More »
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 …
How Soon After Ex-Dividend Date Can I Sell? All You Need to Know Read More »
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 …
What If the Dividend Payout Ratio is More Than 100? All You Need to Know Read More »
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 …
What Are the 4 Types of Dividend Policy? (Explained) Read More »
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 …
DRIPs – What are Dividend Reinvestment Plans and How Do They Work? Read More »
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, …
Key Differences Between Dividend Yield and Dividend Payout (For Beginner and Advanced) Read More »
