THE DIVIDEND YIELD AND HOW TO USE IT WHEN PERFORMING STOCK ANALYSIS

- Links to social media accounts; https://www.instagram.com/matrich_investing/?hl=en https://www.facebook.com/Matrich-Investing-104068614639938/ https://twitter.com/MatrichInvesti1?s=09 EVERYTHING ABOUT THE DIVIDEND YIELD This is a ratio that shows the rate of dividend paid to investors in comparison to the share price This yield shows the rate of return an investor would get as dividends only in comparison to the capital that has been invested A company that has put more effort into it’s growth could choose to pay a small dividend and use majority of the profits in scaling up the business therefore as a result giving out a smaller dividend yield while companies that don’t show the need to scale up as a priority could give out a larger portion of it’s profits as dividends which results to a higher dividend yield ADVANTAGES OF THE DIVIDEND YIELD The dividends that are paid out could increase the value of your investment that is if they are reinvested It helps an investor come about with decisions as to where he or she should allocate his or her capital in the stock market CHALLENGES BEHIND USING THE DIVIDEND YIELD A larger dividend yield could attract an investor but could come at the expense of slowing down the growth of the business It’s not wise to rely on dividend yield alone as a financial metric when performing stock analysis as poor performing companies could also pull off larger dividend yield IT’S FORMULA 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅 𝑷𝒆𝒓 𝑺𝒉𝒂𝒓𝒆/𝑺𝒉𝒂𝒓𝒆 𝑷𝒓𝒊𝒄𝒆 𝒙 𝟏𝟎𝟎% #investing #wealth #shares #bonds #income #success #investors #capital #dividends #shareprice #ownership #business #stocks #companies #tanzania

Category