Is Investing For Dividends A Good Idea
| Business : Investing Many people invest money in stocks and shares, and they go for ones that pay out good dividends - these are the sums of money that are usually paid out annually to share holders, where you have a little of the companies profits go to you as a thank you for owning the shares, effectively. This process is called dividend giving, and the stock that is about to go out is marked XD, or ex-dividend, and you can't buy the share in that period so that you can't just cash in on the dividend. If you are holding stocks and shares for the longer term then holding shares with a good dividend can be a good idea; any small changes should be ridden out and in the long term the stock market will tend to rise, and therefore this means the average stock will tend to rise too if all the stocks added together averagely increase over a period of say ten years. There are lists in many magazines and sites of high dividend paying shares, for instance in the UK Lloyds bank is one that has a reputation for always paying out a high dividend to its shareholders.
 Questions about investing:
|
|
Tweet this!
