If you hold stocks that pay dividends, you have two choices. You can take the cash you receive out of your investment account or you can put it to work buying more shares.
So what is the best option for you?
Read on to find out…
Investing for income with dividends
If you’re investing for the long-term, chances are you’ve got some sturdy dividend paying companies in your portfo... ››› more
If you're investing for dividends, it's not a good idea to only look for companies with the highest dividend yields. A high dividend yield can actually be an indication that a company is going to cut it.
It's important to check how sustainable a dividend is.
Let's take a closer look at how to do this…
Using dividend cover to check a company’s dividends
Dividend cover is a popula... ››› more
If you invest for income, you want to know about dividend safety. When a company cuts its dividend, the income from your portfolio will fall.
So how can you check dividend safety?
Read on to find out…
When it comes to dividends don’t worry about earnings
Earnings aren’t always as they appear to be. Company management can push numbers about to make sure that the revenue recorde... ››› more
Investing in dividend paying stocks is a strategy followed by many investors.
To find the best dividend paying companies, you have two options. You can do some research and uncover the best shares to buy or you can invest in a unit trust or exchange traded fund (ETF) and let a fund manager do the picking.
So which option should you pick?
Read on to find out…
Dividend paying stock... ››› more
If you're an income seeker, you no doubt have some dividend paying shares in your portfolio.
But did you know that you can make these dividends work for you? You can use your dividends to grow your investment amount.
It all comes down to compounding.
So what is compounding? And how can you use compounding to grow your investment?
Read on to find out…
What is compounding?
Com... ››› more
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
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