answersLogoWhite

0

For the past few years, the global economies have been very unstable. This has led to many investors to see their portfolio values swing up and down considerably. While many investors have seen their portfolio values fluctuate considerably, dividend investors have continued to see strong returns on their investment.

A dividend investor is an individual that has an investment strategy focused on investing in stocks and funds that pay out dividends. All successful companies, from time to time, pay out a dividend to their shareholders. N some cases, the dividend could be quite large in an attempt to entice new investors. However, in most cases, a company will pay out dividend each year, which tends to not fluctuate too much but is normally tied to the company's overall performance. A dividend investor will seek out investing in these companies because these investments will provide a semi-guarantee that the investor will receive a dividend each year, which is on top of any gain from a value increase.

When a dividend investor is looking for a new company or fund to invest in, the first thing they should look for is a history of dividends paid. Since dividends can be somewhat random with many companies, a dividend investor should look for a company that has a history of paying out stable dividends. Many dividend-paying companies will pay out an annual, or even quarterly, dividend that is equal to around three and five percent of the per share value.

While a company may have paid out a dividend each year, an investor should also carefully look at the company's cash and liquidity positions. If a company has a dwindling amount of cash on their balance sheets, it could mean that they have been paying out too much in dividends and may have to cut back in the future. On the other hand, if a company is accumulating a lot of cash, it could mean that they are looking to pay out a significant dividend in the future. Investors should also consider what type of growth the company offers. While dividends provide some stability, the return will still be maximized if the stock grows in value.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

What is a profit earned by an investor?

A dividend.


Who is a good dividend investor?

A good dividend investor is someone who chooses to own part of a company that is being very successful in the past and a similar trend in the present and near and long term future. A good dividend investor is someone who has a steady and rising income of dividends that gradually become of a higher value.


What are shares?

A share in a company gives you as an investor a share in its dividend.


What provides the investor with the security that he or she will be paid a profit in the form of a dividend?

preferred stock...


Which of these provides the investor with the security that he or she will be paid a profit in the form of a dividend?

preferred stock


Advantages and disadvantages of dividend policy?

The advantages of dividend policies are that they provide an outline of what the investor can expect from the company regardless of what the policy is. Stable dividends are typically preferred over fluctuating dividends. The main disadvantage of dividend policies is that is they are too generous, the company may struggle and if they attempt to reduce the dividend then investor's can become disenchanted as it is considered a cut in pay.


Where can I find online information about dividend investor?

Leading dividend income websites provide a wealth of information as well as dividend stock ... high dividend stocks, a dividend stock rating system, and investing videos, ... which allow you to create a dividend portfolio using their online tools.


How long do you need to own a stock before being paid dividends?

you must own the stock prior to the ex-dividend date to receive the recently announced dividend. owning the stock one day before the ex-dividend date qualifies an investor to that dividend payout


Is there a secret to becoming an investor in home rentals?

There are no secrets for becoming a investor in home rentals. You just have to know where to start and how to do it. When starting in home rentals, you start small and work your way up.


If an investor buys stock on the ex-dividend date will that individual receive the dividend?

No, the definition of ex-dividend date is trading without the dividend. Any stock purchased "ex-dividend" date is not entitled to the dividend. AND equally as importantly OFFSETTING this - is the insatnt that happens the stock price is reduced by the amiunt of the dividend being paid. NO you cannot "steal" a dividend - that is buy it the day before the divideden gets paid (or ownership date actually) - and sell the day after - all you do is get the dividend and the equally lower stock value.


What has the author Daniel Peris written?

Daniel Peris has written: 'The strategic dividend investor' -- subject(s): Investment analysis, Dividends


Does your stock pay a dividend for Microsoft?

Yes, Microsoft Corporation pays a dividend. As of my last update, the company has a history of regularly increasing its dividend payments, reflecting its strong financial performance and commitment to returning value to shareholders. For the most current dividend yield and payment information, it's best to check the latest financial news or Microsoft's investor relations website.