If you're investing for income, dividends play a vital role in your strategy.
Whilst there are no guarantees that a company will always pay out a dividend, you can check the likelihood of this with some simple calculations.
One of these calculations is the dividend pay-out ratio.
So how can you calculate the dividend pay-out ratio? And how can you use this information?
Read on to find ... ››› more
Investing in companies for their dividend payments may be part of your investment strategy.
Receiving dividends reminds you that your investment is doing well and paying you a tidy sum twice a year.
But there are other reasons why you should be happy about receiving dividends from companies you invest in.
What are these?
Read on to find out…
Dividends reveal a lot about a compa... ››› more
One sign of a company worth investing in for its dividend payments is when it can consistently raise these over the years.
But this doesn't necessarily mean that all is well within the company. Even from the outside if a company's looking good, you need to do some digging around before committing your cash to investing.
One prime example of this is UK supermarket giant Tesco. The supermarket... ››› more
If you're an income investor, the last thing you want is to invest in a company for its dividend and for the company to cut it.
Even if you're not investing solely for a company's dividend it can be worthwhile finding out more. When a company regularly pays a dividend then cuts it or withholds it, chances are the share price will fall as a result.
So what can you look at when it comes to che... ››› more
Dividends matter to a lot of investors.
If you have a lot of dividend paying stocks in your portfolio, you'll want to check whether they're likely to continue. And if you're about to invest in a stock because of its dividend, you'll want to check the likelihood of the company continuing to pay it.
So what can you do to check?
There are a couple of things you can do. Read on to find out wh... ››› more
If you rely on dividend payments for income or reinvest your dividends to help grow your investment, you want to check if they're safe.
Whether a company's going to continue to pay dividends into the future is an important aspect of your investment strategy.
So how can you check the safety of your dividend payments?
One well-used method is checking a company's dividend cover.
Read on t... ››› more
Investing in dividend paying companies is a great way to secure an income into the future.
If you want to build up your income paying portfolio for later in life, what's the best way to achieve this?
Let's take a closer look…
Getting started with your dividend portfolio
If you’re looking to earn a decent income from your dividend portfolio in the future, the earlier you get star... ››› more
Running a stop loss is one of the easiest ways for investors to keep a lid on their losses when investing in shares. Trailing stop losses also have their benefits as they lock in profits when a share price rises.
But what should you do when it comes to stop losses with your dividend paying shares? After all, you bought them for their dividend payments, not capital appreciation.
Here's one wa... ››› more
If you're looking for bumper dividend yields, you could search further afield than South Africa.
So where can you look to invest?
Read on to find out…
The link between share prices and dividend yields
When share prices rise it causes their dividend yields to fall.
For instance…
Company ABC’s shares are trading at R20 each. It pays R1 a year in dividends. That means it di... ››› more
When it comes to finding the companies that will continue to pay great dividends into the future, you need to look back at what's happened in the past.
By looking back at how companies have performed over the past five to ten years, you can gauge how they may perform going forward.
Following a strategy like this is one of the best ways to gauge what companies look promising if you're investi... ››› more
Contrary to what you may believe, a company's dividend yield actually tells you very little about how much it will pay you.
Yes, the dividend yield is your income from a company. And yes, the bigger the dividend yield, the bigger the payments.
But it's not just as simple as that. Especially if the company is a real estate investment trust (REIT).
Let's take a closer look…
How the ... ››› more
If you're thinking about buying a share because of its dividend and the company declares a dividend while you're thinking about investing, how can you ensure you get the dividend?
There are key dates surrounding the payment of dividends. And one important one is the record date.
To be entitled to a dividend payment, you need to ensure you own shares before this date.
Let's take a closer ... ››› more
If you're looking to invest for income, dividend paying shares are a great place to start.
So if you want to build a dividend portfolio, where should you begin?
Let's take a closer look…
Finding the right dividend paying shares
The first thing you need to do it find shares to put into your dividend paying portfolio. You tend to find that the larger companies on the Johannesburg S... ››› more
As an income investor, you're looking to invest in the best dividend paying stocks. You want to build a portfolio of shares that, over time, increases your dividend pay outs.
But do you have a plan to make your dividends work best for you? Unless you need your dividend income to live off, what should you do with it?
There are two ways that you can make your dividend income work best for you.... ››› more
If you're looking for an investment portfolio that pays you an income, you can't look by dividend paying shares.
Investing in well-established, solid companies that pay dividends is a great option. You stand to benefit from twice yearly pay outs from the company, plus capital appreciation over the long-term.
One ratio that can help you weigh up good dividend paying companies is the dividend ... ››› more
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