Dividend Irrelevance Theory is a theory that a company’s dividend policy has no real effect on the value of the company. A theory which explains that investors are not concerned with a company's dividend policy since they can sell a portion of their portfolio of equities if they want cash. The dividend irrelevance theory essentially indicates that an issuance of dividends … [Read more...]
what is Dividend Recapitalization
Issuing debt and using the proceeds to pay a special dividend to stockholders. When a company incurs a new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm, which can authorize a dividend recapitalization as an alternative to selling its equity stake in the company. Dividend … [Read more...]
What is a Dividend Rollover Plan?
Dividend rollover plans are processes that involve the buying and selling securities that are shortly going to pay a dividend. An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this … [Read more...]
Covered calls VS Dividends
There are 2 great ways to pull out monthly income from the stocks you own. These are covered calls and dividends.. If you are going to hold a stock for a long period of time you would like to be pulling money from your stock both ways. If you can’t pull out money both ways which way would be considered the better income? Let’s look at that for a second. A dividend is when … [Read more...]
Self-Liquidating Loans – Fact or Fiction?
Self-Liquidating Loans - Fact or Fiction? A self-liquidating "LOAN" is fiction. You will never get a loan that youwill never have to pay back from anybody. You need to be very careful whenyou are presented with the opportunity to get "money for nothing!" A true, self liquidating "LOAN", standing on it's own, is a pipe dream - it'sperpetual motion. A loan that pays itself off … [Read more...]