Where can I learn to invest dividends
Making Money With Dividends: How To Do It Right
When things are noticeably quieter on the stock markets, the dividend and dividend strategy become interesting.
A dividend-based strategy can be profitable and safe.
A dividend is the payment that a company pays out to its shareholders.
For you as an investor, the dividend is nothing more than your share of the profits of the company whose shares you have bought.
At the proposal of the Management Board and the Supervisory Board, the Annual General Meeting determines the amount of the dividend.
Making Money From Dividends: How To Benefit From The Right Dividend Strategy
The dividend strategy can be an additional source of income for traders and can be used for a continuous monthly cash return.
Investors pursuing a dividend strategy seek to maximize the amount of dividends generated by their portfolio.
After all, this is how money can be made with dividends.
More on this: dividend strategy
When choosing securities, investors pay attention to certain factors.
One of these is that the company must have a reliable cash flow so that the likelihood of a dividend cut can be limited.
A company that has always increased its dividend in the past without any cut is considered ideal.
Read more: Dividend Selection Methods
If suitable stocks are found, it is not uncommon for the dividends paid out to be reinvested in stocks.
On the one hand, the more shares the investor holds, the more is paid out, and on the other hand, profits are maximized through regular dividend increases. The purchase of shares is therefore important in order to exert this effect even further.
On the day the dividend is paid out, it is often the case that the share price will collapse by roughly the value that makes up the amount of the dividend payment.
What role does the dividend yield play in this?
How lucrative the dividend can be is shown above all by the dividend yield.
To find this out, simply divide the dividend by the share price and multiply that amount by 100.
The dividend can be seen as an indicator of the economic success of a company as a whole.
A high dividend yield is a sign that the company is economically well positioned and that investors can participate in the company's success.
This supports the share price, as investors naturally like to invest in economically well-positioned companies. The consequence of this is that if the demand for stocks with high dividends increases, the prices will also rise.
Most companies with high dividends also convince in other areas with their numbers and have convincing earnings per share.
However, these arguments only count if the dividend is paid on a sustainable basis.
This means that this paid out profit must be invested in the economic quality of the company in the long term.
US stocks: Top dividend aristocrats from the S&P 500 - Part 1US dividend aristocrats Part I: Oil, telecommunications and food - these stocks provide investors with a dividend yield of over 6% ›read more
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