Dividend Income

Dividend yield and dividend payout ratio are great matrices to find out if one should invest in a stock if you are looking for dividend income. Although the dividend yield is different than the payout ratio. In my opinion, the dividend payout ratio is a more important and comparatively more stable indicator. Because it shows … Read more

I will use Coke to explain the Forward Annual Dividend Yield, and we will discuss other possibilities. I hold Coke because I know the business and whoever heard about Warren Buffet, probably knows that KO is one of his favorite businesses. So this is a screenshot from Yahoo Finance. You can get all this information … Read more

I started making money after turning 20, but started making real money in 2007. But, as it was a job in private sector, it did not come with a promise of pension. And being in India, the government does not provide any social security that would count in anyway when you will not be working. … Read more

No, it is not. You can buy stocks lower and sell them when the price goes up. That will be capital gain. You can sell or buy options on Robinhood and make money. You can day trade too, but I believe your portfolio value has to be more than $25,000. And of course, when companies pay out dividends, for holding the respective stock, you get the dividend too.

It depends, a matured company that is not growing as much will have a higher payout ratio. But, a company that is growing, will have a low payout ratio. And any company that has a high return on equity, you want that company to keep the money instead of paying dividends and compound that money to grow your capital.

The dividend yield on stock will increase if the stock price drops like we are seeing a sea of red in the market now due to COVID 2019 crisis. Drop is stock price is not the only instance when dividend yield increases. If we keep the stock price constant and increase pay out ratio from … Read more

2019 showed us great gains in the stock market. That does not exactly take away the possibility of a recession. While the murmur in the market about a looming recession has died down. As trade spat with China seems to be being resolved. While there is a new tension in the middle east and the … Read more

When my father asked me if I am familiar with peer to peer lending or investing, I told him I have 3 years of experience in investing in P2P platforms already. In China and in the USA the peer to peer lending is fairly popular. In India it is a new concept, I do not … Read more