We are Educating People on “Making Money with Dividends“

          part of our Stocks, Shares and Investments Training 
 

One of the ways you make money with stocks is by investing in companies that pay dividends.

Dividends are profits the company distributes to shareholders. The companies don’t do this out of the kindness of their hearts – this is what a company is all about; making money for the owners. Dividends usually don’t represent all of a company’s profits. The company retains some portion for future use – in acquisitions or to retire debt, for example.

Most companies pay dividends in the form of cash, although you may hear of occasions when a company uses stock instead. Many investors are attracted to stocks with a good history of paying dividends.

The company’s board of directors sets the dividend at a quarterly meeting. It is important to note that they are under no obligation to pay a dividend. If the company is hurting financially or the board is concerned about future prospects, it can forego the dividend.

The board sets the dividend rate at a per share basis. For example, the board may declare a quarterly dividend of $0.50 per share. This means if you own 100 shares of stock, you will get a check for $50 for that quarter.

Dividends come is two types: fixed and variable. Dividends that pay at a fixed rate go to owners of preferred stock, while variable dividends go to common stock holders.

Dividends offer investors another way to make money, especially if your goal is current income. Many investors find that buying and holding companies with a good history of paying dividends makes good sense for financial goals.

If you would like to learn more in detail then sign up for our new Stock, Shares & Investments course today. Course starts on Saturday 29th March 2014 and now offers a complete practical guided training into trading Spread Betting or CFD’s