What is Dividend in the Stock market, Dividend yield, Important Dividend Dates, and Why Dividend stock are most important for your Portfolio??
shanu kumar
Professional Stock market Trader /Option Seller (Full time) NISM 8 clear (Equity Derivatives) NISM 15 (Coming soon)
?? A Dividend is the distribution of a company's earnings to its shareholders and it is determined by the company's board of directors.
?? Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.
?? The Dividend yield is the dividend per share and is expressed as a percentage of a Company's shares prices.
?? IMPORTANT DIVIDEND DATES??
ANNOUNCEMENT DATE : Dividends are announced by company management on the announcement date (or declaration date) and must be approved by the shareholders before they can be paid.
EX- DIVIDEND DATE : The date on which the dividend eligibility expires is called the ex-dividend date or simply the ex-date.
RECORD DATE : The record date is the cutoff date, established by the company to determine which shareholders are eligible to receive a dividend or distribution.
PAYMENT DATE : The company issues the payment of the dividend on the payment date.
?? Why dividend stocks are most important in your Portfolio.??
1) If you're going to be in the market for a long period of time, you might as well be getting paid.
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2) If your portfolio drops in value, the dividends will help make up for some of the unrealized losses.
3) Cash flow is king. When you get paid a dividend the money is yours. You can only make money with non-dividend-paying stocks when you sell.
4) You have to hold the stock to get the dividend. This solidifies a long-term investing mindset. That's powerful. Very few people can hold onto their stocks for the long term.
5) Dividends are quiet. You could be making 10k/month in dividends and nobody would know.
6) Dividends give you more dry powder to buy more shares at a discount. When the market drops, you'll be happy to have the extra capital.
7) Waking up to a dividend just hits differently. It's money you've earned for doing zero work. You were getting paid in your sleep.
8) Your portfolio will keep on growing plus you will get dividends every month to fund your expenses. You will get dual benefits.
9) Many good Dividend-paying stocks with high growth potential.
10) Find the Fastest growth company with high Dividend payouts it is your work.
?? Build a dividend portfolio with high growth potential, So it can pay your bills for the rest of your life.