Whitney Richland, CPA, CGFM’s Post

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

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

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.

Dividend Yield Trap A lot of investors buy high dividend yield stocks but that’s not a right approach. Let’s understand through an example: 1. Let’s imagine this company is making a Earning Per Share of Rs 10 that is total profit divide by total outstanding share. 2. Now if we see the company has dividend pay out ratio is 50% 3. That means on profit per share earned company will give 50% as dividend that will come out to be 5 Rs dividend per share. 4. Now assuming the current market price of stock is 100 5. That means if you buy 1 share at 100 Rs the company would have given you 5 Rs of dividend 6. That means your return through dividend would be 5%. 7. Now, lot of people think that total stock market return is equal to price appreciation + dividend yield. 8. So they think 5% will be generated through dividend only so we can easily buy the stock 9. But they forget a very important thing this is not about the past dividend yield it is about the expected dividend yield. 10. Let’s imagine the company at the end of 1st year reported a profit of 70 crore due to lower profit correct they decided to give a dividend of only 20% 11. That means on a earning per share of 7 Rs we will only get dividend of 1.4 Rs . 12. Now we bought the stock at 100 Rs but we ended up getting a dividend of only 1.4 13. that means a dividend yield of only 1.4% alright. 14. So, always think about expected dividend yield as compared to the past dividend yield. #dividend #stocks #stockmarket #financetips #investing #stocktips #indianstockmarket #finnacle

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

https://lnkd.in/dEFVw9wK ASX Best Dividend Stocks to Buy - Free Dividend Stock Reports to help you understand and buy or hold ASX best dividend stocks. Get ASX listed securities... #ASXBestDividendStockstoBuy #TopASXStocksByDividendYield #TopASXStocks #DividendStocks #buy #sell

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

It Hurts..... Referring to NSE unlisted shares, creating heartaches amongst the dalal street boys. FYI : BSE is a listed stock whereas NSE rules the 'grey' market stocks also known as the "unlisted market".   For the uninitiated :  An unlisted market is also known as an unofficial market where shares that are not listed on any stock exchange are bought and sold. Stop : But How are these traded ? Because there is no official exchange, unlisted stocks are not regulated by any authority, its not easy to find the early bird investor in this unlisted stock. When you do find this smart alec, he can ask you for a ticket to the Moon on Musk's Moon venture for the NSE stock. Discovery : The stock price of NSE increased by 25% in this May '24 to Date Month. But Why did the stock price rise ? NSE is India’s largest stock exchange in terms of trading volume and is much larger than BSE. 🚀 Q4 FY 23-24 Results were 🚀 like a WOW. 🚀 The company’s board approved a bonus issue in the ratio of 4:1 (this means investors will get 4 shares against 1 equity held) for the existing shareholders. 🚀 Additionally, a dividend of ₹90 per share was declared, further boosting investor returns.  What the Fxxx is a Bonus share ? Bonus shares are essentially free shares a company gives to its existing shareholders. It's a way to reward investors and potentially boost stock liquidity.  Post this announcement, the stock price went from ₹4,300-4,400 last week to around ₹5,400-5,800 in the 'grey market' i.e. a gain of almost 25%. Considering a stock price of ₹5,500, NSE would be the world 7th largest stock exchange with a valuation of ₹2.73 lakh crore or about $33 billion, falling right after the NASDAQ (at $34.5 billion).  Not only this, but the stock price of NSE has grown by almost 67% YTD which is significantly more than that of the Nifty and BSE, which grew by 2.3% and 20.4%, respectively.  🚀 What is behind this rise? 🚀 Strong Financials: The net profit of NSE surged 20% YoY to ₹2,488 crore in Q4. For the full year, profit rose 51% to ₹8,306 crore. 🚀 Rising Transactions: NSE, like any other exchange, provides services such as exchange listing, transaction charges, trading, clearing and settlement, indices, data services, technology solutions, financial education, and more. Hence with more players on both sides, more voulmes are a given. Every Indian is interested in easy equity money. Demat accounts, saw a record-breaking number of new additions in the last financial year (FY24). On the cards : FY24, over 75 main board issues launched, the highest number in two years. In addition, 31 IPOs have been launched since Jan 24. This rise in listings would also lead to increase in the listing charges earned by the stock exchange. Soon to come to IPO : NSE 👑

Highest-ever dividend payout! THIS midcap stock declares interim dividend, stock split – Check record date, ratio and other details

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