This tag is to be used for any dividends related question. When appropriate it should be accompanied by country tag.

learn more… | top users | synonyms

14
votes
6answers
4k views

Why is it rational to pay out a dividend?

Imagine a mature company, which has stable earnings and made a profit this year. The company is planing to pay out a part of this earnings to its shareholders. Assuming the stock price goes down ...
1
vote
2answers
189 views

Index funds with dividends?

I'm new to buying stocks. I've done a bit of reading about investing in the stock market. Some people seem to recommend index funds. Other people seem to recommend only buying stocks that pay ...
-2
votes
0answers
44 views

What is the best example of dividend and re-invest gains? [closed]

Is buying dividend shares and re-investing the best market technique? Check out these articles:​ ...
1
vote
4answers
403 views

Is it wise to invest in a stock with a large Div yield?

Looking at the stocks for BHP it shows a Div yield of 11.23%. This seems quite appealing to me, despite the fact that the price is going down simply because of the huge interest I would get on my ...
3
votes
3answers
987 views

Is it better to miss the dividend and buy the undervalued stock?

I understand that if you buy a stock on or after the ex date you wont receive the dividend. But as the stock will drop on the ex date, Is this not an excellent opportunity to buy the stock at a ...
3
votes
1answer
42 views

Is dividend factored into Annualized return?

I would like to keep it as simple as possible. If I visit Vanguard Benchmark returns page here https://personal.vanguard.com/us/funds/tools/benchmarkreturns It shows annualized returns for different ...
3
votes
1answer
32 views

Taxes on qualifying dividends when reinvesting

I put all my investment money in a managed account with Chase Private. The account is set up to reinvest all dividends, capital gain distributions and interests my stocks/mutual funds/treasury funds ...
5
votes
2answers
108 views

Contracter with day job - limited company dividends

I currently have a 'day job' as a web designer. I am considering taking on some freelance work which I have been offered and this would be completed in evening/weekends whilst also retaining my day ...
13
votes
4answers
2k views

Should I buy stocks of my current employer because of its high dividend yield?

I have some cash in the bank I am ready to invest. My company has been profitable since 20 years and provides a generous dividend of roughly 8% per year. So I though buying some stocks could be a ...
1
vote
0answers
29 views

Taxes on capital gains and dividends for non-resident alien

I am a citizen of Spain living in Spain. In the past I lived in the US for over 10 yrs. During the time I lived in the US I opened a brokerage account to trade stocks. Now I have two options: ...
0
votes
2answers
121 views

what is difference between stock and dividend?

What is the difference between stock and dividend,bonds. And how can i buy stocks and what is the place to buy them can anyone please tell me iam new to this world of finance and stock market.
5
votes
1answer
62 views

Can a non dividend-paying product (say ETF) suddenly start paying dividends?

If I buy shares of a product that currently does not pay dividends, can it theoretically/technically start paying dividends in the future?
2
votes
3answers
130 views

Do stock prices really go down by the amount of the dividend?

This question asks whether stock prices really go down by the amount of the dividend on the day you need to own it to receive the dividend (ex-date). It has two answers: The accepted answer explains ...
23
votes
13answers
5k views

Why do people always talk about stocks that pay high dividends?

Isn't it true that on the ex-dividend date, the price of the stock goes down roughly the amount of the dividend? That is, what you gain in dividend, you lose in price drop. (Of course, sometimes it ...
3
votes
1answer
138 views

T-mobile stock: difference between TMUSP vs TMUS

Is there a way to invest in T-mobile stock from the US? Yahoo finance lists both: TMUSP - NasdaqGS with a dividend of 4.3% and avg volume of 90,000 and TMUS - NasdaqGS with a dividend of 7.4% and ...
4
votes
4answers
81 views

Company changing 401k providers in December, will I lose my dividends?

Typically I've seen that I have gotten Dividend re-investments in December for my current 401k elections for the past several years. My company is switching providers, do I loose what would have ...
2
votes
1answer
43 views

Why do dividend reinvestments not match my calculator?

I've seen this occur numerous times in my IRAs. In the transaction section of my Fidelity IRA, it shows a line item Reinvestment XXX with a dollar amount. Clicking the details will display the ...
3
votes
2answers
315 views

Did I get screwed in taxes on a mutual fund dividend payment?

A few years ago I bought a mutual fund in late November, and unbeknownst to me, the fund was set to do an annual dividend distribution about 3 weeks later in mid-December. I bought 5000 shares at ...
5
votes
2answers
317 views

Do index tracker funds (ETFs) typically pay dividends?

When you invest in a fund, such as a FTSE 100 tracker, do you get the benefit of dividends? I understand the FTSE 100 index does not include dividends. Of course, if you held the share basket ...
1
vote
1answer
84 views

Stock dividends effect on dividend received by shareholder

In CFA level 1 Reading 38, it says Stock dividends are a non-cash form of dividends. With a stock dividend (also known as a bonus issue of shares), the company distributes additional shares ...
1
vote
0answers
49 views

Why my tax calculation (SA302) doesn't show my dividends through a service company?

I've submitted my tax return (Self Assessment) to HMRC for the recent year and I've enter my total of the dividends (from my Limited company as contractor) into Service companies box as below: as ...
4
votes
6answers
229 views

What are the risks of Dividend-yielding stocks?

At work a couple of my colleges was talking about this board game where the goal was to produce the highest passive income. researching the term i learned it was exactly what i was trying to ...
1
vote
1answer
53 views

Is it wise to advise the use of an SEIS or VCT to offset a one-off large tax bill?

So in the UK the tax law on dividends is changing meaning a reasonably hefty increase in tax for 2016. Therefore there's an opportunity to take as much dividend as possible now to reduce future tax. ...
-5
votes
2answers
192 views

I'm 18. How to build good monthly income at my 20's?

I have 18 years , from a middle high class from Brazil. Finishing the high school this year, debt free with plans of studying and living overseas in the next years. I have access to about 20k dollars ...
2
votes
1answer
49 views

Ex-dividend dates for Nikkei and Dow Jones on CFD and Spread Bet Markets?

I've found a few ex-dividend date sites for the Dow Jones (can't find any decent ones for the Japanese Nikkei Index). However the ex-dividend dates don't seem to match when I get dividend payouts on ...
2
votes
2answers
47 views

If I invest on overseas markets will I receive in different currency?

I'm sorry if this is silly, but i really want to know if it is possible to me to earn dividends(or selling stocks whatever) in another currency like U.S Dollar or Euros, because my country is on ...
22
votes
7answers
7k views

What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out?

What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out? I guess I am confused: If you know the yield and when the dividend will be paid out, why ...
6
votes
4answers
128 views

How do dividend reinvestment purchases work?

Typically if I buy a stock I buy the stock from some guy selling the stock. If I own AAPL I receive a ~2% annual dividend payout which I choose to reinvest automatically. Who am I buying these ...
2
votes
0answers
30 views

Are foreigners who buy UK ETFs subjected to a withholding tax?

Currently, when a foreigner buys U.S ETFs, the dividends or income (in the case of bond ETF) will be taxed at 30%. Suppose a foreigner, say an American or Singaporean, buys a UK bond ETF. Is there a ...
1
vote
1answer
72 views

Why do taxes exclude reinvested dividends and capital gains as performance?

Source: p 371, Investing For Canadians For Dummies, 3 Ed (2009) by Tony Martin, Eric Tyson [...] [1.] First, the programs can calculate your effective or “internal” rate of return (IRR) by ...
2
votes
1answer
63 views

Do you pay any tax on dividends up to £30k?

I'm a bit confused how dividends are taxable. Assuming I want to take ~£30k dividends ('tax credit' excluded) on which I will use my ~£10k personal allowance. Do I pay any income tax from it (from ...
4
votes
2answers
67 views

On what quantity the Dividend is given in India?

I do have stocks (purchased) in a Script in India. The stock declared announced the Dividend on 20 May 2015, and I purchased the equity recently (few days back), but the Stock equity's Effective Date ...
5
votes
3answers
179 views

Is the return on investment better with high or low dividends?

Consider two companies, A and B. Company A offers little in dividends, and reinvests most its profit. Company B offers generous dividends, but reinvests little of its profit. How would I calculate ...
7
votes
1answer
1k views

Do companies only pay dividends if they are in profit?

My understanding of dividends is that the company pays each shareholder a fixed amount of money per share they own. I can see how this would work if the company is in profit, because the company can ...
103
votes
20answers
19k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
1
vote
1answer
89 views

Avoiding tax complexities of REITs

I would like to invest in REITs for their high yield, but would like to avoid their tax complexities. If I buy exposure to REITs through an ETF or mutual fund, will that abstract away the need to do ...
3
votes
2answers
76 views

Considering investing in CHN as a dividend stock

I've been looking at investing in another dividend stock, and I have been using dividata.com to do some research. I have found several stocks that I am interested in that have a roughly 9% or 10% ...
9
votes
3answers
623 views

Risks associated with investing in dividend paying stocks for short term income. Alternatives?

I will be leaving my place of employment in the near future to run and grow my small business full-time. After assessing my expenses I'm expecting to be in the red $300-$400 a month for the next 1-2 ...
2
votes
1answer
67 views

total of all dividend payments for a particular company

According to http://www.dividend.com/dividend-stocks/financial/asset-management/pfg-principal-financial-group/ on June 26, 2015, PFG paid out $0.38 per share. According to ...
4
votes
3answers
2k views

What to do with dividends and capital gains from Roth IRA. Reinvest or Transfer to market settlement fund?

I am 22 and just opened a Roth IRA from Vanguard. I am putting 5.5K a year but I was wondering if someone can give me pros and cons for what to do with my dividends and capital gains? The two options ...
4
votes
2answers
342 views

What are the tax benefits of dividends vs selling stock

When people need to live off there investments they often say to go for funds that pay high dividends, but I'm having trouble understanding what the difference between getting dividends, and selling a ...
1
vote
1answer
107 views

How can I compare the performance of a high dividend funds with other funds and or an index

I've been trying to do some investment due diligence. I'm looking at funds for a family member that needs some dividend income. Some of the high dividend funds that were recommended to me seem to have ...
5
votes
1answer
134 views

Are Morning Star Ratings really that important?

I'm trying to aid a family member in making some investment decisions. I've placed most of my money in Vanguard mutual funds and they have done pretty well. My family member has a "financial advisor" ...
2
votes
0answers
115 views

Salary vs Dividend: is this example wrong?

I saw a link to a great article in old (2012) question. http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/ I've tried understanding the article well, but I think that the author ...
0
votes
2answers
89 views

dividend cover ratio for stocks

Is there a source for a stock's dividend cover ratio? Dividend cover in respect of ordinary share capital may be calculated as follows: Dividend Cover Ratio = Profit after tax - Dividend ...
1
vote
1answer
87 views

Selling non-dividend for dividend stocks

H all, Few years ago , I received from my previous employer several hundred RSU, all managed by ETrade. since then all have already got Vested. I never sold neither bought any, in other words, I ...
3
votes
1answer
214 views

What happens to investment gains and distributions inside an HSA?

I did some research and it turns out that you can invest funds that you have in your Health Savings Account in certain things. If I invest $5,000 from my HSA into a Mutual Fund (which is acceptable) ...
8
votes
2answers
924 views

How do you determine the dividend payout date for Mutual Funds?

For stocks it seems to be easy to find dividend payment information. However, for mutual funds, like VDIGX, I am having an issue figuring out expected payout dates and frequency. Can someone point me ...
3
votes
1answer
95 views

How do dividends affect your average cost (both re-invested and non re-invested)

I have read that re-invested dividends lower your taxes by increasing your average cost of the security so that when you sell your security, the difference between the sales price minus the book value ...
1
vote
0answers
33 views

How is dividend of my owned stocks calculated? [duplicate]

Say I bought a stock on Jan 5 and sold it on Sept 3 in the same year, how do the company pay the dividend? What if I sold it on Jan 6?