Dividend.com: Dividend University
Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center articles.
When looking for dividend stocks, it’s tempting to gravitate towards securities with the highest yields. This is not always the best strategy; there’s a lot more to a good dividend stock than a high yield.
Dividends are often offered by established companies, but dividends may also be used by new or in-trouble companies attempting to attract investors. A value trap occurs when investors are lured in by a high dividend yield, only to find the underlying company was not such a great buy after all.
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Dividends have been a common feature of equity investing for over a century, and the legendary gurus who embrace this strategy have always held the spotlight. And while these individuals helped shape and develop the market we know today, there is one group of individuals that is often overlooked, though they have continually played a major role in the world of income investing: professors.
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Investing is by no means a simple process; there are countless considerations that must be paid, and infinite risks along the way. But sometimes the best advice is extremely simple to digest. A few choice words can summarize winning strategies and rules of thumb quite nicely. Below are 41 of the most insightful and useful concise quotes about investing.
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There are dozens of myths out there about dividend investing and how it works. If an investor does not fully grasp how to invest in dividend companies, it's hard to know what to believe about dividend stocks. Below, we debunk 10 common myths about dividend stocks.
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While dividends have been a common feature of equity investing for over a century, dividend-focused investing continues to build in popularity. Not only do studies indicate long-term outperformance for dividend-paying stocks, but large dividend-oriented portfolios can provide a significant source of income for investors, whether in retirement or not. Here are some of the key things that financial advisors ought to know about dividend stocks.
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Dividend yields are often calculated using historical data, but when you're considering investing in a security for income purposes, it’s much more important to consider what the future might look like.
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Special dividends are one-time cash payouts to shareholders. Sometimes, when a company has extra cash on the books, rather than reinvest it back into the company, it will pay it out to shareholders on a one-off basis.
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Investing in foreign dividend stocks is one way to diversify a portfolio. It opens up a whole new area of commerce that can bring excellent returns to an investor’s pockets. However, as with any investment, there are certain risks involved when buying foreign dividend stocks. With a little due diligence, patience, and practice any investor can utilize foreign dividend stocks to add to their investment returns.
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The great global hunt is on. No, not for some exotic animal in the wild. The hunt is on in the global financial markets for something that has become rare: a decent yield. Thanks to the ZIRP (zero interest rate policy) being followed by nearly all the major central banks, such as the Federal Reserve, it has become harder and harder for individual investors (and institutions too) to find any investment out there that pays a decent yield.
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Dividends do not always have to result in regular cash payments. Many companies offer DRIPs (Dividend ReInvestment Programs) that use the funds from dividends to automatically purchase more shares of stock, at little to no cost to the investor.
Sure, investors can do the reinvestment themselves in their brokerage accounts after receiving cash dividends, but the transaction fees associated with share purchases can be a drag on one’s returns. That’s why companies have created DRIP plans: to make reinvestment much cheaper and simpler.
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Dividend investing is a great way for investors to see a steady stream of returns on their investments. Though the world of dividend investing can seem conservative and basic on the surface, there is a lot to know in the dividend world that can help investors create long term wealth. Here are 40 things every dividend investor should know about dividend investing:
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A Real Estate Investment Trust (REIT) is a security that trades on exchanges like a normal stock, but conducts its business in various aspects of the real estate market. While most REITs focus on owning properties and renting them out to tenants, others work in financing properties and mortgages.
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When it comes to investing, knowing your dates is important. Although long-term buy-and-hold investing means that investors don’t really need to worry about the quarterly dates tied to dividend payouts, it’s still helpful to be familiar with the terms. Likewise, more aggressive traders can actually use dividend dates as part of an alpha-generating strategy.
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Not all dividends are created equal, and investors need to be aware of this fact. The seemingly minor differences can make a big impact on bottom line returns.
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Dividend stocks have become popular partially due to the fact that they are viewed as safe investments. Unfortunately in investing, there is always some risk involved.
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While dividend investing is a great way for investors to get a steady stream of return through income from their stock purchases, there are still certain signs that need to be examined to make sure an investment is a smart one. One important metric to measure the reliability of a dividend stock is the dividend payout ratio.
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As the Federal Reserve continues with its zero interest rate polices, investors have been having a tough time finding the income they need. Traditional sources of income like money market funds, certificates of deposits and treasury bonds are all paying paltry yields - in some cases they’re yielding less than inflation. To that end, investors have been stuffing their portfolios with a multitude of other asset classes. Securities like preferred stocks, convertible bonds and floating-rate bank loans have become portfolio staples as investors look to get their yield fix.
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On the surface, the concept of “dividend investing” seems like a very straightforward idea. Invest in companies that make distributions, reinvest those dividends regularly, and slowly accumulate wealth over the long run.In reality, however, implementing a successful dividend income strategy for your portfolio is far from an easy task.
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Here at Dividend.com, we are dead set against the idea of company stock buybacks. That’s not just simple bias, though — read on to learn why buybacks are a colossal waste of company money and how investors are much better served with higher dividends.
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