3
votes
4answers
500 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 ...
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 ...
1
vote
2answers
71 views

How to account for foreign taxes paid on dividends?

For purposes of filing Form 1116 (Foreign Tax Credit), I have to correlate foreign taxes paid to the amount of dividends paid by foreign stocks. Is this something I can request from my brokerage, or ...
5
votes
3answers
348 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
407 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 ...
5
votes
2answers
352 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 ...
7
votes
3answers
370 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
369 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 ...
6
votes
1answer
947 views

Which US market indexes (Dow/DJIA, S&P500, NASDAQ) include reinvested dividends?

Which major US market indexes (Dow/DJIA, S&P 500, NASDAQ) include returns from reinvested dividends, and which don't? Where can "total return" information be found for each index that doesn't ...
7
votes
3answers
229 views

What to do with small dividends in brokerage account?

I just got paid some dividends from an ETF that I own. It is only $4, which is sitting as cash in my brokerage account. I'm aware that this is a very tiny amount of money in the grand scheme of ...
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
850 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?