At what time do I need to be in a stock to qualify for their dividend?
Also, what is the earliest day that I can sell the stock and get to keep the dividend?
You need to buy the stock prior to the ex-dividend date. You can sell it the day it goes ex-dividend and still get the dividend. So, you only need to own the shares one day, but you need to be aware that the stock price will open down the amount of the dividend on the day it goes ex-dividend. ie, a stock that closed at $20 on tuesday, (assuming wed is ex-date) will open at 19.50 (assuming a .50 dividend). The stock will then trade up or down depending on buy and sell orders. If you are trying to do some dividend capture trading, remember that others are too, and selling pressure on the ex-date may preclude your getting out with a profit. And, other market forces are typically greater that the dividend amount, so beware. You will do best if you sort of get to know a stock and how it typically trades. Then compare its chart to a sector etf to get a better timing feel. ie a utility stock and XLU the utility ETF. Good luck.
The cash dividend strategy generates cash income from the sale of covered options. Most traders are not familiar with the concept of selling option premium to generate cash income. Selling covered options can realistically produce a 20 to 30% or higher cash dividend that is credited to your brokerage account when an option is sold.
The cash dividend strategy produced $221,407.53 in cash dividends in actual trading this month and over 4 million dollars in cash dividends over the past two years. Discover how this strategy incurs considerably less risk than owning stocks but at the same time can provide consistent returns during any type of market condition.
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Technorati Tags: Cash Dividend, Chuck Hughes, covered options, Income, trading
George Vasic, Equity Strategist and Chief Economist for UBS Securities Canada Inc, with Rob Carrick from the Globe and Mail discuss how to find good dividend stocks.
What are the dangers of a high dividend yield? What is a typical dividend yield for a blue chip stock on the TSX? What is a dividend growth stock and how does it work? What kind of premium can you expect to yield from dividend stocks? How have the dividend growth stocks performed in times of recession?
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I am not sure how exactly to ask this. Is there an added benefit to owning enough shares of a dividend paying company so that each quarter I get enough that another share or more can be reinvested? Therefore every quarter I have one or more additional shares and therefore am guaranteed to always make more in dividends. I can’t figure out the math. FYI I currently receive about 36.00 in dividends from GE quarterly and can therefore reinvest around 2 shares a quarter.
There is really no cumulative benefit to owning a certain amount of stock in a company.
You will always receive the same dividend per share. Dividends are a part of the return on your investment as a stockholder. You can use this cash for any purpose that you desire, including purchasing more shares. Please keep in mind that the more money that you have invested in a single stock, the more of a hit that you will take if that particular stock should tank.
If you are interested in reinvesting your dividends, then look into a dividend reinvestment plan (DIP). Some brokerages and most employee stock plans will offer a DIP where you will not be charged a commission on each purchase. While this would save you money on brokerage fees, you will loose the flexibility to use your dividends for any other purpose, such as purchasing shares of a different company or paying for dinner out.
As J mentioned, doing so in a tax deferred account will defer the payment of taxes on the dividends, whether you reinvest or not. Discuss the strategic use of any tax deferred investment strategy with your tax profession as the benefits and drawbacks vary dependent upon your specific situation.
On a personal note, I do own shares of the same company (GE) and consider it to be one of the top blue ribbon US public companies, and it has, in my opinion, a very low risk profile.
Just a little tribute video I made for Lana Turner and her daughter, Cheryl Crane. Their tumultous lives in what seemed to be a charmed existence fascinated 1950s Hollywood when the then 14-year-old Cheryl accidently killed her mother’s mobster boyfriend Johnny Stompanato, trying to protect her mom from his abusive rage. Forever after, whenever either mother or daughter were mentioned in any article, be it for a magazine or newspaper, there had to be an inclusion of the infamous 1958 Good Friday scandal. As a star baby, Cheryl lived a life of material privilege but did not get to see her parents as much as she would have liked. Her mother and her father, Steve Crane, divorced when she was still an infant and she watched as many men came in and out of her mother’s life, and suffered from terrible insecurities and some abuses that plagued her into adulthood. Cheryl told her story in her 1988 autobiography, “Detour: A Hollywood Story”, concluding it with the sense that she had come to peace with herself, as well as having a better relationship with Lana than she ever had. In her latest book, “Lana: The Memories, The Myths and The Movies”, she summed up her relationship with her mom this way – “Like her relationship with Gran, the relationship between Mother and me was strained many times over the years but never broken. I never stopped loving her. We lived through harrowing times together, beginning with my birth.” Cheryl was an RH baby and had to have blood transfusions every four hours for weeks after she was born to save her life. After the Stompanato incident (which was ruled justifiable homicide), Cheryl’s life continued to spin out of control, landing her in minor scrapes with the law and resulting in time spent in reform schools and a mental institution. But she bounced back, definately showing an instinct for survival inherited from her famous mama, who also managed to endure scandals and shine even brighter. “My life turned around when I went to work for my father at the age of twenty one. He was by then one of the country’s largest resturanters. As I matured into a young adult, Mother made me feel her pride in me always – proud that I went to business school at Cornell, had a head for numbers, went into real estate, wrote a book. She would express herself in a way that said she was downright astonished that someone who could do those things came from her.” As an admirer of both Lana and Cheryl, I threw together these photos and effects to Billie Holiday’s “God Bless The Child”. Enjoy!
DISCLAIMER: All photos and music are copyrighted to their respective owners. No infringement intended.
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Technorati Tags: Cheryl, Crane, Lana, OneTrueMedia, Turner
I know VZ, JNJ, PG, ABT, DUK are some.
Does anyone recommend any stock screeners and methods, or just good dividend paying stocks?
a nice source for info is www.dividenddetective.com
personally I like Linn Energy ( LINE)…. energy prices have levelled of….should hold or rise….and at the current price 24/25…it amounts to a fantstic 10% div…!!
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Dividend stock picks are harder to choose now more than ever before. Will the economic crises kill dividend paying stocks or will dividend investing continue to strive? Finding the best of the best dividend payers is harder now than it has been in decades. We always look beyond the basics of dividend yield and payout ratios and scrutinize every figure on a companys balance sheet with special attention to its debt structure. After all, in a credit crunch even profitable blue chips like GE may cut their dividends to preserve capital if they face more maturing debt than they can pay off or roll over.
Dividend Genius – Smart Research On High Yield Stocks is an award winning dividend paying stock newsletter by editor Jim Trippon. “Dividend Genius is on a mission to help its readers make safe investment yields of 8%, 15% and more! In this era of bank CD’s that pay back less than inflation, non-existent yields on money-market mutual funds, and falling stock prices, investors need an edge just to survive. Our research will give you that edge.”
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BP considers suspending dividend payments during the second financial quarter as pressure grows to pay for the Gulf of Mexico oil spill.
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Technorati Tags: america, BP, british petroleum, crude, dividends, environment, gulf of mexico, oil, payments, price, shares, spill, US
Suppose, a will be unable to pay off its bondholders if it pays a huge dividend. Can it still payout the dividend, anyway?
You can pay dividends when your retained earnings is not in deficit and when you have the cash to pay them. If because by paying huge dividends you cannot pay your creditors, the company will eventually fall into bankruptcy. No directors in their right mind will declare payment of dividends when the company does not have the cash flow for that.
ACG2021 Financial Accounting SFCC Fall 2007 Chapter 11 Videos
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