Dividend Investing — The Nuts and BoltsBefore we dive into the world of dividend investing, lets first stop and think about why people invest in stocks. Our philosophy of stock investing is "stocks represent part ownership in a business". In other words, when we buy stocks, we're buying part of a company and not a virtual piece of paper. So when we buy stock we expect the value of the stock to go up over time. This is called "capital appreciation". But there is one more component to the total return on our stock purchase...... dividends. In this section, we're going to focus on the details behind dividends and how to maximize the return on our investment through dividends. We will take a look at what exactly a dividend is, how it comes about, and what are some important things to note about dividends. Dividend yield is a term that always crops up in any discussion about dividends. Let's look at exactly what it means and how to calculate it. We will study the Dow Dividend Yield to see how companies that make up the Down Jones Index did as far as dividends go. Finally, we will conclude our coverage on dividend yields by looking at some high yield dividend stocks. Here's some insight into the process of declaring dividends.... What are some of the important dates when it comes to dividends? You can find details in this section .... including coverage of the ex dividend date. What should you look for when considering companies with attractive dividends? How do you find these companies? We take a look at how dividend investing works in Mutual Funds. We will also check out the top dividend funds. One of the most important aspects of dividend investing is how they are taxed. Let's take a look at the dividend tax rate and learn about what a qualified dividend is. Also called DRIPS, this program allows you to buy additional shares with your dividend at no commission and at attractive prices compared to the current market value. Here's how the program works....
DDM is a stock valuation model. The basic concept is that the value of a stock is equal to the amount it will provide investors in current and future dividends. In summary, dividend investing is an important part of the overall stock investing process. Being savvy about this method makes your stock picking more robust. We've covered dividends extensively here. We hope it will serve as your comprehensive, one-stop-shop for practical information pertaining to dividend-focused investing. Please subscribe to our Free Newsletter for great tips on how to get started and learn to invest by yourself. Return from Dividend Investing page to Independent Stock Investing home page
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