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
When you invest in shares, it's not just capital growth (a rise in a company's share price) you're looking for.
There are also other signs of a company rewarding its shareholders. That's paying dividends and share buybacks.
Let's take a closer look at each of these and why they're good news for shareholders…
Rewarding shareholders with dividends
Rewarding shareholders with divide... ››› 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
One of Warren Buffett's infamous sayings is: ‘Lethargy bordering on sloth remains the cornerstone of our investment style'. In other words, not doing very much.
If you invest in companies that are at the top of their game and continue to perform, you can practically sit back and watch your investment grow.
It all comes down to investing in great, solid companies and reinvesting your divide... ››› more
Warren Buffett (the CEO of Berkshire Hathaway) is the world's 3rd richest man, with a staggering net worth of $66 billion. On Thursday, Berkshire Hathaway's share price crossed over $200,000 per share for the first time ever.
You see, today Warren Buffett is one of the the world's most successful investors, and it's all thanks to his investment strategy.
It's funny because in 1984, he expl... ››› 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
If you're investing for dividends, you want to see if a company looks likely to continue paying those dividends into the future.
Of course, there are no guarantees. But there are some things you can check that can give you a good indication.
You can start with looking at a company's free cash flow. Let's take a closer look…
Why look at a company’s free cash flow?
When it comes t... ››› more
Investing in dividend paying companies is a great long-term investment strategy.
Companies that pay solid, consistent dividends over the years tend to be the giants of the stock market.
The benefits from investing in dividend paying companies are two-fold.
Read on to uncover why you should consider investing in companies that pay dividends…
What are dividends?
Dividends are si... ››› more
If you're looking to invest in shares that pay dividends, where do you start?
The first thing you need to know is, how do dividends work?
Why does a company's share price drop before it pays a dividend?
What are the best ratios to use to weigh up dividend-paying companies?
And where can you find the best dividend-paying stocks?
Keep reading to find out the answers to these question... ››› more
Occasionally, companies buy back their own shares. The overall effect is it reduces the number of shares in circulation.
Some analysts believe that the company could put the money to better use. It could pay back excess company money to shareholders.
But there are some benefits of share buy backs. Let's take a closer look at what these are…
Share buy backs can boost a company’s share... ››› more
One to way to grow your wealth is to buy investments that generate an income.
Investments that tick this box come in a variety of different forms. You could receive rental income from property, interest payments (or coupons) from bonds or you can get income from shares as dividends.
Income investments hold the key to growing your wealth over time. One great way to do this is to reinvest you... ››› more
Arguably, one of the best ways to prepare for retirement is to have a few different means at your disposal. This gives you some diversification and reduces your risks if something untoward was to happen to one of your plans. For instance, you may have a retirement annuity, a pension scheme through your job and a bumper savings account. And if you haven't thought about it before, you can put some m... ››› more
Investing in dividend paying shares is one way to produce an income stream when you retire. You can buy the shares and, until you need the dividends for income, keep reinvesting. You can just sit back and watch your holding grow. But you shouldn't just rush out and buy these shares at any price. The price you pay will have a bearing on your return from the dividends. Let's take a closer look…
... ››› more
The future for gold shares is starting to look a bit better. This is despite the gold price itself struggling and sitting below $1,300. So why are gold shares looking better? And why could gold shares be a buy in spite of a blundering gold price? Let's take a closer look…
The struggling gold price
Today, the gold price is sitting around $1,290. That’s over 30% lower than it was in 2011 ... ››› more
Investing in dividends is a great way to generate an income. If you don't immediately need that income, then why not reinvest those dividends? Dividend reinvestment is a great way to boost your shareholding and in turn boost the dividends you receive. Let's take a closer look at how dividend reinvestment works…
Dividends are the secret to long-term investing success
Successful investing for ... ››› more
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