income

What is better for long term investors? growth stocks or income stocks?

Investors looking to fund their living expenses through their share portfolio typically select stocks which are high yielding to provide them with income. However, what we have identified over the years is that high yielding stocks have not perform well in the stock market and therefore have not created significant capital appreciation for their investors. The total portfolio returns are therefore worse for investors who hold income stocks. Companies which typically pay large dividends are usually blue-chip mature companies. As …

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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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