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2007-02-14 13:39:54 · 5 answers · asked by minni mave 1 in Business & Finance Investing

5 answers

Both answers are correct - every three or six months, a publicly-traded company will decide that every shareholder should get part of the profits from the previous period. They declare a dividend - Acme announces that it will pay $0.05/share regular dividend to shareholders on record of February 20th, on March 1st. Two things you should consider:

Many tech companies don't pay a dividend, which doesn't make them bad investments. They use the profits to invest in the business or buy another business. The reason is that the company believes that the business will grow faster with this approach. Secondly, you should not pay attention to the size of the dividend without looking at the share price too. A $0.25 dividend every quarter is $1.00 per year income so, if the stock is $100, the yield is only 1% ($1 / $100). If the stock was priced at $20, then the yield will be 5 %. ($1 / $20).

2007-02-14 14:48:49 · answer #1 · answered by rarguile 6 · 1 0

Dividend is a payment from the company to the stock holder paid twice a year. When the company makes a profit it gives dividends. Dividend is an important factor in deciding a stock

2007-02-14 23:45:03 · answer #2 · answered by Diana 1 · 0 0

A stock dividend is a payment from the company to the people that own its stock. In simple terms, a company that makes a profit may decide to give part of it back to its shareholders. The shareholders get whatever amount the Board of Directors decides to pay out per share, times the number of shares they own. You can find out which companies pay dividends by looking at their stock price listings in the business section.

2007-02-14 21:47:12 · answer #3 · answered by Brian G 6 · 1 0

A dividend is the part of the profit that you get for being a part owner of the company. You can look it up at Yahoo finance and input the stock symbol or name of the company you are interested in. Pepsi is PEP Ford is F. You can find them all if you are interested.

2007-02-14 21:46:34 · answer #4 · answered by Nelson_DeVon 7 · 1 0

Profit sharing. Between stock owners are getting.

http://index-go.com/finance-stock-market-guide.asp

2007-02-14 23:49:58 · answer #5 · answered by carlos 5 · 0 0

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