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

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9
votes
6answers
2k 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 ...
37
votes
8answers
4k 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 ...
11
votes
5answers
7k 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 ...
4
votes
1answer
206 views

Determining the minimum dividend that should be paid from my S corporation

I am the sole shareholder and only employee of an S corporation. I understand that all profits of the corporation are passed through and taxed as income to me. I also understand that all dividends ...
7
votes
2answers
268 views

What ways are there to invest in stocks, options, indexes, etc, and where should one start (what funds)?

I have been poking around with investing for a few years now. I have diversified my assets a decent amount, between a home, several IRA's and 401k's, savings and checking accounts, and a little bit of ...
11
votes
3answers
2k 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 ...
5
votes
1answer
2k views

Why would a company issue a scrip dividend and how will this issue affect me?

Barclays in the UK have sent out a leaflet recently (online version) saying they are moving to a Scrip Dividend programme. The FAQ does its best to answer questions but still uses a lot of jargon and ...
5
votes
1answer
116 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?
3
votes
1answer
722 views

Dividends and tax withholding for ETF vs Mutual Fund for U.S. Non-Resident Alien?

I'm a non-US resident alien, considering to invest in either commission-free ETFs and Mutual Funds offered by TD Ameritrade. According to The American Jobs Creation Act of 2004, certain type of ...
2
votes
2answers
820 views

What is the dividend tax rate for UK stock

I had purchased some UK stocks from London Stock Exchange. May I know, what is the dividend tax rate by UK government for UK stocks, on foreign investor (I am from Malaysia)?
1
vote
1answer
926 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
1answer
53 views

Is it possible that for shares to be reinvested in a stock you already sold?

I just recently set my taxable investment account from reinvest dividends to deposit in cash. However, there seems to be a delay (I assume related to one of the various dates associated with ...
0
votes
2answers
1k 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: ...