Common Stock Dividends: What Are They Worth?

The thought of dividends excites some investors to a point of financial ecstasy while moving others to bouts of slumber. Some investors seek only common stocks with high and predictable dividend payments, and other investors search out stocks with exceptional growth potential, eschewing those that pay any dividend. There are a series of dividend issues…

 

Defining Yield: A Word of Many Meanings

The term “yield” is thrown about often by the financial press and others. The trouble is that yield has many different meanings and implications for investors. This workshop will try and sort out some of the major differences. It will not, however, attempt to present mathematically all of the possible yield calculations created by institutions…

 

Defining Yield: A Word of Many Meanings

The term “yield” is thrown about often by the financial press and others. The trouble is that yield has many different meanings and implications for investors. This article will try and sort out some of the major differences. It will not, however, attempt to present mathematically all of the possible yield calculations created by institutions…

 

Who Gets a Dividend Payment After a Trade?

Companies distribute cash dividends to their shareholders at the discretion of the board of directors. The board of directors examines the business prospects, cash generation and cash needs to determine if they can afford to make a distribution of profit in the form of a cash dividend and how large a distribution to make. Most…

 

Analyzing a Stock by Its Dividend and Shareholder Yield

One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is either returned to shareholders or it’s not. Investors with a controlling stake in a company (including influence on decisions made…

 

Chasing Dividend Yield for Income: Three Reasons to Be Wary

Financial advisors use a variety of investment strategies to replace retiree employment salaries or business income. These include bond ladders, systematic withdrawal programs (SWPs), guaranteed minimum withdrawal benefit (GMWB) products, and even strategies in the relatively new category of target payout funds. But one of the most common approaches is the dividend yield strategy. Relying…