dividend

4 factors to look for when searching for dividend stocks

Investors looking to use their investments to fund their living expenses often try to find a stock which pays a good dividend. Below are some of the factors to look for in a company to identify a good dividend paying stock. 1. Dividend Yield Investors can use the dividend yield ratio to determine the size of dividend which will be paid to the shareholder. The formula is Dividend Yield= Dividend Per Share/Price Per Share This compares what annual payout is …

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Dividend Basics

We are at that time of the year when many companies on the ASX declare their interim dividends. Here is what you need to know about company dividends. Why are shareholders paid dividends? When a company makes a profit, they can reinvest the profits into the company or they can distribute these profits to the shareholders in the method of a dividend. Usually, the companies who pay these dividends are mature companies and can afford to distribute the income to …

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Centuria Industrial: Defensive with a great dividend

Centuria Industrial REIT (ASX:CIP) is a stock that performs well in tough markets and pays an attractive dividend. Not only that, but when share markets head higher, it doesn’t get left behind. Since we sent out our research report to clients on 7 May, the CIP share price has increased by 5.6% compared to 4.1% for the S&P/ASX 200. CIP also yields 5.82%. Despite the recent lift in the share price, we still like the company. It is a stock …

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7 Strategies to Take if Labor Changes Imputation Dividend Refunds

Labor has proposed a new policy where they want to eradicate cash refunds for excess franking credits. This means that if Labor wins the Federal election in 2019, thousands of SMSF holders could see a cut to their income. As a share investor, if this happens, it is important to understand the different strategies available to minimise the damage. A franked dividend means the company has already paid 30% tax on the income. This pre-paid tax on a dividend is …

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Advantages and Disadvantages of a Dividend Reinvestment Plan (DRP)

Companies may decide to pay a portion of their earnings back to shareholders in the form a dividend. This dividend can be paid out in cash or shares. The payment of shares is known as a dividend reinvestment plan (DRP). It is not compulsory for companies to pay out dividends as they may decide to keep the funds within the company as retained earnings. As an investor you may be given a choice to take up your dividend as a …

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