New answers tagged

0

The thing that motivates 'a company' (meaning, as a reminder, the Board of Directors voted in by the majority of voting shareholders) to pay dividends to non-cumulative preferred shareholders (which are often non-voting), is that preferred shares get preference in the order of dividends being paid out. If I own 100% of the voting common shares of my private ...


1

As you discovered, the S&P index returns, if calculated just by looking at the index year on year, do not account for dividends. It only goes back to 1988, but ^SP500TR can be useful for what you seek. I'd add to your idea of treating the index as if it were a stock, an S&P unit or share. Each year, don't adjust the index, adjust the number of units. ...


1

It's bad form to answer my own question, but the comments have reveals that the question was flawed. First of all, OJFord is right to point out that this is an OEIC and not an ETF. Furthermore, the question assumed that the dividend date was when the dividends accumulated from the fund's underlying stocks were reinvested. However, if you compare any ...


2

First of all, that's not an ETF (Exchange-Traded Fund) - it's an OEIC (Open-Ended Investment Company). (It's price reflects the underlying holdings, 'open-ended' means it can create and sell you 1000 units without moving the price, assuming the underlying prices don't move.) You receive dividends from it, the OEIC, not (directly) the underlying - or you ...


10

The fund you linked is described as "accumulation units" and has a counterpart described as "income units". Most ETFs (in the US in particular) behave like income units. Accumulation units, which directly reinvest dividends as they are received from stock holdings and do not pay them out in cash, may be common in the UK but are likely ...


1

I have no clue how dividends are handled in the UK. Here's how they are handled in the US. See my answer here. If dividends are reinvested, they are of no consequence other than taxation if received in a non sheltered account and possibly a minor discrepancy in reinvested shares acquired because the Payable date is after the Ex=Dividend date (share price ...


1

Where did you get this impression? Of course you get a dividend. Typically four times a year, but some of them only annually, or twice a year, or monthly. For example VTI (https://investor.vanguard.com/etf/profile/distributions/vti): Type Distrib Record Ex-Div Payable Div $0.69990 06/26/20 06/25/20 06/30/20 Div $0.61360 03/27/...


0

In absence of tax in the jurisdiction of the non-resident alien, the most efficient way is synthetic long stock position with options (Long Call, Short Put, Long Treasury), or long Single Stock Futures/CFD with Long Treasury. If the bet is on Index instead of single stock, the best way is Index futures with Long Treasury, followed by Ireland-domiciled ETF (...


1

The company doesn't benefit directly. In fact listing and having shareholders is a pain. It involves extra regulation and expense. Trading may drive a share price up on the basis that strong buy sentiment can be seen as an indicator of a well run company. Indirect benefits include: A high share price helps future capital raising as they have enhanced ...


-6

I don't understand how trading the stocks with others (who didn't participate in the IPO) would benefit the company I suggest studying Prisoner's Dilemma and indeed making a study of all of game theory. (A starting place might be https://www.amazon.com/Prisoners-Dilemma-Neumann-Theory-Puzzle/dp/038541580X/ ) Stocks are a pure belief-based self-referential ...


0

Whole Splits and Options A whole stock split results in a proportional increase in the number of options and a proportional decrease in the strike price. Whole splits have a "1" in the second part of the ratio, such as 2 for 1 or 3 for 1. For example, if you own two $50 calls on a stock that declares a 5 for 1 stock split, after the split you ...


1

The vast majority of stocks pay dividends quarterly, approximately 3 months apart. The are a small amount that pay monthly or semi-annually. There are lots of web sites that will provide dividend information. Fidelity offers historical dividends here. If you google "Dividend Calendar" you'll find lots of others as well. Here's the one for the ...


4

What’s not clear to me is if there is only one ex-dividend date per year for a given stock or if there is one every trimester ? There's one ex-dividend date for each dividend payment. Typically that's quarterly, but occasionally companies will pay in other frequencies or irregular "special dividends" in unusual circumstances. Let’s say Coca Cola ...


0

Most stocks pay dividends quarterly (every three months). When "the" ex-dividend date is listed, it is the most recently announced one. The exact date within the month can vary; the next one will be announced when it gets closer.


2

Acme Corporation A dividend stock with a high and stable dividend yield! The perfect stock for risk-averse dividend investors. Year 2020 Dividends: $5 Stock price on December 31: $25 Dividend yield: 20% Year 2021 Dividends: $0.5 Stock price on December 31: $2.5 Dividend yield: 20% Year 2022 Dividends: $0.05 Stock price on December 31: $0.25 Dividend ...


11

The high dividend yields you listed are trailing dividend yields. Trailing dividend yields represent dividends of the past relative to the stock prices of the present. The past is the past, so what you should be thinking about is the forward dividend yield, rather than the trailing dividend yield. Forward dividend yields represent future dividends relative ...


5

High dividend yield occurs when share price drops. A very high yield is often a signal that a company's financials are problematic. If this is the case and the dividend is unsustainable, it can be cut, leading to further deterioration of share price. In order to determine whether it's a good investment or an accident waiting to happen, you'd have to be ...


19

I only looked at TUI, but I imagine this is valid for the others as well. What does "dividend yield" mean? It is the last dividend payed in relation to the current share price. Comparing with this number is not really useful: the last TUI dividend was 0,54 €. The current price is about 3,60 €, while the price in February was around 10 €. If we ...


Top 50 recent answers are included