Ara Oghoorian, CFA, CFP, CPA’s Post

The dividend is the amount of money that a company pays to its shareholders as dividends on a per-share basis. On the other side, the dividend yield indicates how much a company pays in dividends each year based on its stock price.

Let's learn about dividend 📨🍩 Dividends are periodic payments made by a company to its shareholders out of its profits.Dividends are paid on a per-share basis, so the more shares a stockholder owns, the more they receive when dividends are paid out. In most cases, companies only pay dividends when they are profitable.That being said, not all profitable companies pay dividends.In general, it is more common for older, more mature companies to pay dividends, as newer companies tend to reinvest most or all of their profits in growth and expansion • Dividend Yield :- Dividend yield is the percentage of a company’s current share price that it pays (per share) in dividends annually. Because a company’s share price changes constantly, its dividend yield does as well.This means that if a company’s stock goes down in value, its dividend yield goes up.Therefore, a higher dividend yield isn’t always indicative of a company doing well. • Dividend Yield Formula :- DY = Dividends Paid per Share Annually / Current Share Price • Ex-Dividend Date and Record Date :- The ex-dividend date is the date on or after which any buyer of a stock is not eligible for the most recently declared dividend. The date of record occurs the next business day.On the date of record, a company examines its records to determine which shareholders owned the stock before the ex-dividend date and are therefore eligible for the dividend payout, an investor must have bought a stock at least one business day before the ex-dividend date and at least two business days before the date of record in order to be eligible to receive the most recently declared dividend payment. #stocnerv

Flash Info #235- Capital Market Preferred dividends refer to the dividends paid to holders of a company's preferred stock. 1. Definition: Preferred dividends are the distributions of a company's profits that are paid out to shareholders of the company's preferred stock before any dividends are paid to the holders of the company's common stock. 2. Preference: Preferred stockholders have a higher claim on the company's earnings and assets compared to common stockholders. This gives them preference in receiving dividends. 3. Dividend Rate: Preferred stocks typically have a stated, fixed dividend rate that is set when the preferred shares are issued. This is unlike common stock dividends, which can fluctuate. 4. Cumulative vs. Non-Cumulative: Preferred dividends can be either cumulative or non-cumulative. Cumulative means if a dividend is missed, it must be paid before common stockholders receive any dividends. Non-cumulative means missed dividends are permanently forgone. 5. Taxation: Preferred dividends are generally taxed as ordinary income to the recipient, unlike qualified dividends from common stock which can receive more favorable tax treatment. 6. Impact on Stock Price: The payment of preferred dividends is seen as a more stable and reliable source of income compared to common stock dividends. This can contribute to higher valuations for preferred shares. 7. Seniority in Bankruptcy: In the event of bankruptcy, preferred stockholders have a higher claim on the company's assets than common stockholders. Preferred dividends provide a predictable income stream for preferred shareholders, who have a senior claim compared to common stockholders. The specific terms of preferred dividends are outlined when the preferred shares are issued. #capitalmarket #investors #ethiopiadiaspora #importer #Exporter #ECMA #founders #ceo #businessowners #banks #moneymarket #commoditymarket #derivatives #valuation

Treasury stock refers to shares of a company's own stock that it has bought back from the open market. These shares are considered "non-outstanding" because they are not held by investors. Reasons for repurchasing treasury stock include boosting stock prices, signaling confidence to investors, or preventing hostile takeovers. Treasury stock doesn't pay dividends, and it reduces both outstanding shares and equity on the balance sheet. Companies can later reissue or retire these shares.

Understanding Cumulative Preferred Stock: A Guide for Investors In the realm of finance, cumulative preferred stock stands as a unique type of equity that grants holders a priority claim on dividends compared to common shareholders. This means that if a company skips dividend payments, cumulative preferred stockholders are entitled to receive all outstanding dividends before any distributions are made to common shareholders. Key Features of Cumulative Preferred Stock: Dividend Priority: Cumulative preferred stockholders take precedence over common shareholders when it comes to dividend payments. Dividend Accumulation: Unpaid dividends from previous periods accumulate and must be paid to cumulative preferred stockholders before common shareholders receive any dividends. Liquidation Preference: In the event of company liquidation, cumulative preferred stockholders have priority over common shareholders in receiving their investment back. Examples of Cumulative Preferred Stock: Bank of America (BAC): BAC's Series A preferred stock is a cumulative issue with a dividend rate of 6.25%. Wells Fargo (WFC): WFC's Series E preferred stock is another cumulative issue with a dividend rate of 6%. Apple (AAPL): AAPL's Series A preferred stock is a cumulative issue with a dividend rate of 4.75%. #stockmarket #stocks #dividends #investments #finance #financialfreedom

Dividend Yield vs Dividend Payout vs Dividend Rate When investing in stocks, one of the exciting aspects is the potential to receive dividends. Let's break down these concepts Stock Price: Rs 350 FY24 Dividend Declared: Rs 10.5 Face Value: Rs 10 FY24 Earnings Per Share: Rs 70 Dividend Yield This metric shows what you earn on your investment in terms of dividends. It's calculated based on the market price you pay for the stock. For our example: Dividend Yield=(Dividend Per ShareStock Price)×100 =(10.5350)×100=3% This means, as an investor, you are earning about 3% of your stock purchase price back as dividends. Dividend Payout This figure indicates how much of its profit a company is distributing to shareholders as dividends. Dividend Payout=(Dividend Per ShareEarnings Per Share)×100 =(10.570)×100=15% In this scenario, the company is distributing 15% of its earnings to shareholders, retaining the remaining 85% for reinvestment in business growth. This balance can show how a company views its growth opportunities; companies with fewer growth opportunities might opt to distribute more of their profits as dividends. Dividend Rate Often quoted by companies but less meaningful for investors and analysts, this is calculated as: Dividend Rate=(Dividend Per ShareFace Value)×100 =(10.510)×100=105% The dividend rate here is 105%, but as mentioned, this number isn't particularly useful for evaluating the quality of an investment since it doesn’t provide insight into the returns relative to the stock price or earnings. In conclusion, when analyzing stocks for investment: - Dividend Yield provides a clear picture of what percentage of the purchase price is returned as dividends, helping gauge the immediate return on investment. - Dividend Payout helps understand how much of its profits a company is giving back to its shareholders versus how much it is reinvesting. Follow Chakravarthy V for more insightful posts on #personalfinance, #wealthmanagement and #investing.

If you would have invested ₹100,000 equally across these companies, you would have received on average around ₹3,000 on each stock last year just as dividends. Read more here

The stock that will have the dividend updated first after a company announces it is typically the common stock of the company. The process is as follows: 1. **Announcement Date**: The company announces the dividend, specifying the amount, the ex-dividend date, and the payment date. 2. **Ex-Dividend Date**: This is usually set one business day before the record date. On the ex-dividend date, the stock price typically drops by the amount of the dividend because new buyers will not be eligible for the declared dividend. 3. **Record Date**: Shareholders who are on the company's books on this date will receive the dividend. 4. **Payment Date**: This is when the dividend is actually paid out to shareholders. Once the dividend is announced, financial data providers and stock exchanges quickly update the dividend information for the company's common stock. The update usually appears in trading platforms, financial news, and other investment tools shortly after the announcement, ensuring that investors are informed about the upcoming dividend. In conclusion, understanding the timing of dividend updates is crucial for investors, especially those following announcements closely. At Wealth Note Share Market Academy, we emphasize the importance of staying informed about key dates such as the ex-dividend date and payment date. This knowledge empowers investors to make strategic decisions. By leveraging the resources and insights provided by Wealth Note Share Market Academy, investors can navigate the complexities of dividend investing with confidence and precision. Just call 7068001919.

Bharat Dynamics Board to Decide Dividend and Stock Split Today Dividend, Stock split stock, Bharat Dynamics dividend record date: Bharat Dynamics shares surged on #BharatDynamics #boardmeeting #dividend #financialnews #marketnews #StockMarket #stocksplit

dividend yield, which is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. A high dividend yield can indicate that a company is returning a significant portion of its earnings to shareholders in the form of dividends. Please note that dividend yields can vary over time and are influenced by factors such as changes in stock prices and dividend payouts.