What is a Dividend? Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many … [Read more...]
Dividend Paying
Dividend is the return that a company gives to its shareholders. When a company earns profit, it can either retain that profit for investment or can distribute the profit amongst its shareholders. In fact, most of the companies retains some part of the profit for further investment and distribute the rest of the amount as dividend to its share holders. Stocks that give time to … [Read more...]
Tax Theory of Dividends
Putting together a dividend tax theory to match a buy-and-hold investment strategy is much complicated by shifting tax laws. Types If you have held a stock for 60 days, dividends paid from the profits of a domestic publicly traded company are "qualified" dividends and currently are taxed at a maximum 15 percent, which is lower than the marginal tax rate for most investors. … [Read more...]
Can You Reinvest Dividends?
A dividend is one of the primary ways by which a company transfers profits to its shareholders. When you're paid a dividend, you typically can choose to receive it in cash or reinvest it and purchase additional stock. If you choose to reinvest your dividends, in effect, you're taking the dividend payment in stock instead of cash. Power of Reinvestment Reinvesting dividend … [Read more...]
what exactly dividends are ?
with the time spent in stock market have you ever heard about the dividends in the form of returns ? i m sure you have , have you ever wondered what dividends exactly are ? Even those people who have made investments that paid dividends may still be a little confused as to exactly what dividends are, however… after all, just because a person has received a dividend payment … [Read more...]