Tagged Questions
-1
votes
1answer
71 views
How do I calculate the dividend yield for Disney Co?
I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at $57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
2
votes
3answers
137 views
Capital gains on no-dividend stocks - a theoretical question
Suppose company X has a policy of never giving out dividends and this policy will never change.
Now suppose company X doubles its earnings every year. Will its stock prices go up? Sure, the company ...
5
votes
1answer
76 views
Question about ex-dividend date timing
For example, if the ex-dividend date is next Monday, and I buy the stock on next Monday, would I get the dividend? Or would the person who sold the stock to me get the dividend?
2
votes
1answer
99 views
Where is dividend information published?
When a company decides to pay a dividend, where does that information go first? Lots of site re-publish the dividend but where do they go to find this information quickly?
6
votes
5answers
624 views
Why do people buy stocks that pay no dividend?
Before recently, Apple Inc. did not give dividend to shareholders.
This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher ...
3
votes
4answers
460 views
Investing in dividend-yielding stocks with money borrowed from margin account?
I am getting ready to invest some of my savings in a stock brokerage account. The well-known brokerages, e.g. ETrade, Ameritrade, etc, have relatively high margin interest rates for the level I am ...
2
votes
5answers
258 views
Can dividends be exploited?
Apple announced a dividend of $2.65/share on August 16th. I was thinking... could somebody buy, say 1,000 shares of Apple, receive the dividend, and then sell the shares right back?
...
1
vote
2answers
109 views
How common are stock/scrip dividends (as opposed to cash dividends) in US equity markets?
Coming from a background in Chinese equities I'm familiar with the idea that dividends can come in the form of either cash or stocks. As far as I can tell, they seem to exist in the US as well, but I ...
4
votes
2answers
249 views
How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends?
The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. ...
6
votes
4answers
244 views
Why is it not a requirement for companies to pay dividends?
I know next to nothing about finance and money, so I'm working towards becoming financially literate. I'm currently reading articles about stocks on Investopedia. An article states,
Common shares ...
12
votes
5answers
234 views
Why would a company with a bad balance sheet be paying dividends?
As an example, Ford Motors recently reinstated its dividend. It still has a lot of debt and a high debt-equity ratio. Its bonds are still rated as junk. Why would a company like this spend its cash ...
1
vote
1answer
2k views
Ex-dividend date: How long do I have to hold a stock in order to get the next dividend?
I want to be a stockholder on record for a dividend. So lets assume I bought stock before the ex dividend date. Can I immediately sell the stock after the ex-dividend date to collect the dividend, or ...
3
votes
1answer
235 views
If I put dividend-paying stocks in my IRA, where does the dividend go when paid?
I have a rollover IRA from an old job's 401k. I have had it sitting uninvested (where it's outperforming my new job's 401k) and I want to start investing it on my own.
If I put a stock that pays a ...
0
votes
2answers
598 views
How to determine duration of a common stock whose dividends grow in perpetuity?
What is the duration of a common stock whose dividends are expected to grow at a constant rate in perpetuity? Specifically, how can I compute this, since the dividends will grow forever?
Update: ...
8
votes
4answers
242 views
Why is a stock that pays a dividend preferrable to one that doesn't?
I understand that a dividend is a way for a company to return money to shareholders. But I'm not quite understanding why it is preferable to capital appreciation and putting the money to work ...
2
votes
1answer
334 views
What does “a stock pays a dividend of 3%” mean?
Does it mean the company pays 3% of the total earnings to the stock holders? So if I have a stock that has 1$ EPS I would receive 3 cents?
0
votes
2answers
121 views
How many stocks will I own in n years if I reinvest my dividends?
Let's say that I own 1000 shares of a stock at 20$. Every quarter, I get a dividend of 0.20$ which is reinvested (buy more of the same stock). Considering that the stock grows 5% annually, how many ...
13
votes
6answers
2k views
Do stock prices drop due to dividends?
From Personal Finance for Dummies, page 209:
Dividends
Dividends are income paid by investments. Both bond funds
and stocks can pay dividends. Bond fund dividends (the interest paid
by the ...
0
votes
1answer
92 views
Effect of different macro trends on different asset classes
Briefly if possible, what are the effects of the following macro environmental trends:
Above-average / high inflation
Deflation
On the following asset classes:
Non-dividend-paying Equities
...
5
votes
3answers
333 views
What are dividends, when are they paid, and how do they affect my position?
New to investing... Some stocks pay dividends but I'm not sure how they might affect my portfolio or in which measure this is important when evaluating a stock. I also don't know how to figure out if ...
7
votes
5answers
1k views
Importance of dividend yield when evaluating a stock?
Why is the dividend yield (Dividend divided by market price) of a stock a valuable parameter to consider when evaluating a stock? By looking at it, what can one infer about the stock?
edit: Thanks ...
10
votes
1answer
399 views
Selling dividend securities in after-market hours: Who gets the dividend?
Consider this scenario:
During normal market hours, you buy a security 1 day before the ex dividend date.
You sell this security in after market trading that same day.
Who gets the dividend, you or ...
4
votes
3answers
288 views
How do I factor dividends and yield into the performance of a security?
The basic stock chart tracks the price of the stock. As discussed here the price of the stock drops by the amount of the dividend. So when a dividend pays out the stock chart makes it look like ...
11
votes
5answers
4k views
Please explain the relationship between dividend amount, stock price, and option value?
I consider myself a reasonably knowledgeable investor, but today was blown away by the fact that I didn't know that a stock's price is decreased by the amount of its dividend. To use a concrete ...
5
votes
2answers
345 views
Using P/E Ratio of an ETF to decide on asset mix
I am a conservative investor with an asset mix of around 50% bonds/cash and 50% stock via large index ETFs. Recently I've been thinking about settling down on a non-emotional way to decide whether ...
10
votes
3answers
742 views
Are there capital gains taxes or dividend taxes if I invest in the U.S. stock market from outside of the country?
Recently, I invested in some stock in the U.S. stock market. I was wondering:
Whether there are capital gains taxes if I sell stock? Do they take account into my foreign exchange loss?
Are there any ...
1
vote
1answer
67 views
What does dividends passed mean in terms of stock?
Need help with this corporate finance homework, argh. They keep saying things like "these covenants include provisions about passing dividends", what the heck?
7
votes
3answers
365 views
How do I know if a dividend stock is “safe” and not a “dividend yield trap”?
e.g. (NYSE:CIM) or (NYSE:AEE) both have high yields, but what are warning signs that these might be dividend yield traps?
8
votes
3answers
365 views
High dividend stocks
Is it a good investment strategy to go long on "boring" companies (AT&T for example) and keep them around just because of their dividends or would it be better to trade more frequently companies ...
31
votes
7answers
3k views
Why does a company pay dividends at all?
If a company can lower the dividends and even stop paying them at all during hard times, why would they re-install them at all?
If I understand correctly a company pays dividends so that investors ...
9
votes
3answers
140 views
Is it better for a public company to increase its dividends, or institute a share buyback?
When a company is profitable and generating substantial positive cash flow, is it better from the company's perspective to have a dividend increase, or institute a share repurchasing program? From an ...
9
votes
1answer
820 views
How exactly do dividend reinvestment plans (DRIPs) work?
And where can I find out what companies offer them? Are there good resources for information on these plans?
