Smart dividend investor’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.

Which one of the following items most likely increases the earnings per share (EPS) of a corporation? A. Purchase of treasury stock. B. Payment of a stock dividend. C. A reduction in the amount of cash dividends paid to common shareholders. D. Declaration of a stock split.

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

Investing in the stock market offers a pathway to potentially grow wealth over time. It involves purchasing shares of companies. Monthly dividend stocks for your February 2024 watchlist. Read more from Stockmarket.com https://lnkd.in/e43Dgi6y

FINRA Rule 5330 requires that dividends are subtracted from the price of a security over night. But all the shareholders of record got that dividend, so the dividend must be added back to the price return in the form of an additional partial share. If it is not added back, the dividend created a loss, which is not true. So with each dividend paid, the price index becomes more and more wrong. Total return is not just the adding of the dividend, it is the “adding BACK of the dividend that was subtracted”! One final thought, a reinvested dividend is the equivalent of a stock split. For example, a $100 stock paid a $5 dividend. Overnight, the price of the shares drops to $95 and the $5 buys 0.05 shares at $95, so you would now have 1.05 shares at $95, making you whole, back to the $100 (the same as a 1.05:1 stock split). This compares to a $100 stock making a 2:1 split, where overnight the price drops to $50 and you end up with 2 shares at $50 each and you are back to the $100. The price return adjusts for splits, but not for reinvested dividends. But these corporate actions have the same impact on the reduced price and increased shares. This needs to change. The Germans changed in 1987, the rest of us are asleep at the switch!! ifa.com/petition

Word of the day Dividend Yield Dividend yield shows the annual dividend income earned by an investor as a percentage of the current market price of a stock. It is calculated by dividing the annual dividend per share by the current market price per share and then multiplying the result by 100. A higher dividend yield number shows that the company is paying a high amount of dividend compared to its stock price.

The stock market is a collection of markets where stocks (shares of ownership in a company) are bought and sold. Here’s a comprehensive overview: ### 1. **Basic Concepts** - **Stocks:** Represent ownership in a company. Owning a stock means you own a share of the company's assets and earnings. - **Shares:** Units of stock. When you buy shares, you become a shareholder. - **Stock Exchange:** A platform where stocks are traded. Major exchanges include the New York Stock Exchange (NYSE) and NASDAQ. - **Stock Index:** A measurement of a section of the stock market. Examples include the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite. ### 2. **How It Works** - **Initial Public Offering (IPO):** When a company first sells shares to the public to raise capital. This is how a company becomes publicly traded. - **Trading:** Stocks are bought and sold through brokers, who execute trades on behalf of investors. Trading can occur on physical exchanges or electronically. - **Market Orders:** Requests to buy or sell stocks at the current market price. - **Limit Orders:** Requests to buy or sell stocks at a specific price. ### 3. **Participants** - **Investors:** Individuals or institutions who buy stocks with the expectation of earning a return. They can be retail investors or institutional investors like mutual funds and pension funds. - **Traders:** Individuals or firms who buy and sell stocks frequently to capitalize on short-term market movements. - **Brokers:** Intermediaries who facilitate the buying and selling of stocks. They can be full-service or discount brokers. ### 4. **Market Types** - **Primary Market:** Where new stocks are issued and sold for the first time. - **Secondary Market:** Where previously issued stocks are bought and sold. ### 5. **Types of Stocks** - **Common Stock:** Gives shareholders voting rights and potential dividends. Common shareholders are last in line during company liquidation. - **Preferred Stock:** Usually doesn’t come with voting rights but has a higher claim on assets and earnings than common stock. Preferred shareholders receive dividends before common shareholders. ### 6. **Investment Strategies** - **Long-Term Investing:** Buying and holding stocks for several years or decades to benefit from long-term growth. - **Short-Term Trading:** Involves buying and selling stocks within short periods (days, weeks) to exploit market fluctuations. - **Dividend Investing:** Focusing on stocks that pay regular dividends, providing a steady income stream. - **Growth Investing:** Targeting stocks expected to grow at an above-average rate compared to other companies. - **Value Investing:** Investing in stocks that appear undervalued compared to their intrinsic value. ### 7. **Risks and Rewards** - **Risks:** Includes market risk (overall market fluctuations), company-specific risk (issues affecting a particular company), and liquidity risk (difficulty in buying or selling without affecting the

I have been getting a lot of questions regarding CNRL Stock splitting. Stock splits have no economic effect on the company and total cost basis does not change. A two for one stock split as you see below, each shareholder will be issued an additional share. The shareholder will have twice as many shares after the split. EPS (and all other share data) will decline by half leaving the P/E and equity market value unchanged. Assuming the dividend payout ratio stays the same as before the split dividend yield will also be the same. Apart from the effect of any information or benefit that investors perceive a stock split to convey, stock splits should be neutral in their effect on shareholders wealth. Investors may perceive the stock split as a positive sign pointing to future stock price increases. Announced stock splits recognize the stock has risen enough to justify a stock split to return the stock price to a lower, more marketable price range.   Do I think they will split?   Well, it appears that all splits have taken place in the spring so if they do split could likely be in in May or June. In the 2000’s they split the stock at around $70 and it’s currently at $110. Earnings call on May 2nd. 2024.  

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.