Category: Dividend Investing
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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How does an Ex-Dividend Date Work?
When it comes to investing in stocks, understanding the ex-dividend date can be crucial for making informed decisions as a dividend investor. The ex-dividend date is the day when a stock starts trading without the value of its next dividend payment. If you buy the stock on or after this date, you won’t receive the…
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How to Use DRIP to Build a Dividend Portfolio
Building a dividend portfolio using a Dividend Reinvestment Plan (DRIP) is a smart and efficient investment strategy. By automatically reinvesting the dividends you earn, you can purchase more shares without any manual intervention. The compounding effect of a DRIP can significantly boost your dividend portfolio’s growth over time. Investing with a DRIP strategy allows you…
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What is a Dividend Reinvestment Plan (DRIP)?
A Dividend Reinvestment Plan, often called a DRIP, allows you to reinvest your cash dividends by purchasing additional shares of the company’s stock. Instead of keeping your dividends in cash, you buy more stock, helping you grow your investment over time. By automatically reinvesting dividends, you can potentially see your portfolio increase faster due to…
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What You Should Know When Dividend Investing?
Dividend investing is a popular strategy for those seeking a stable and reliable source of income from their investments. To maximize the benefits and minimize risks of dividend investing, it’s essential to be well-informed about key financial metrics that indicate the health and sustainability of a company’s dividend payouts. Financial Metrics for Dividend Investors When…
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Why Do Dividend Investors Love Dividend Aristocrats?
Dividend Aristocrats are companies that have a 25-year track record of increasing their dividend payouts to shareholders and are included in the S&P 500. These companies are part of an elite group that not only delivers regular dividends but also shows strong financial health and stability. Investing in dividend aristocrats can be an excellent strategy…
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What is Dividend Investing and Does Your Portfolio Need It?
Dividend investing is a popular strategy where investors buy stocks that return capital back to investors. Dividends are regular profit-sharing payments made by companies to their shareholders. Dividend investing can provide a steady stream of income, making it appealing for investors looking to live off their portfolio of investments. You might wonder why companies pay…
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Dividend Irrelevance: The Lack of Impact on Stock Value
Dividend Irrelevance Theory, a fundamental concept in corporate finance, conveys that the dividend policy of a company is inconsequential to its valuation. Pioneered by economists Franco Modigliani and Merton Miller in their 1961 paper, the theory points that the value of a firm is determined by its earnings and the level of risk of its…