when you ask about what is dividend stock. dividend stocks are quarterly paid stocks to the shareholders. which means it consistently paid stock every four quarters of the year.
dividend stocks; clear definition
there are a lot of types of stocks. however without knowing the difference. you can’t buy any dividend stock. so let’s take a look deeply now.
if any of the stocks are in the market without didn’t paying the profit amount, for any quarter to the shareholders. then it wasn’t eligible for the dividend stock.
most people believe that dividend stocks are some type of stock like common and uncommon stocks. but it’s not really like that.
when you buy some of the stock with your money . and when you sell that stock at a very high price, then it is called a profit. but most of the people are confused here.
the dividend will be paid during the holding period of every quarter. let’s say that particular stock pays 4 times per year. then the dividend will be paid every 3 months to the stockholders.
moreover, dividends are not the profit of the trade. it is a profit of the income from the business.
how do determine dividend stock
for instance let’s say you want to buy dividend stocks and get continuous dividend profit from your chosen stock.
then first of all you want to consider everything about your share of stocks. because 90% of the stocks pay dividends in the stock market. but we want which stock will pay continuous dividends over the past five years.
when you buy dividend stock without consistency. then which leads to getting unpaid for some quarters (or) sometimes a year to get paid from particular stocks. if you want to get paid whenever the dividend is released.
then don’t forget to consider the five-year history of that particular company. let’s say you are going to buy Apple stock. then check the 10k report of the company. to find, out whether your Apple industry paid every quarter dividend profits (or) not. the 10k report is called the annual report of the industry.
the 10k report shows the history of the past 10 years. so you can do an analysis easily and determine the stocks. which is attractive to buy or not.
what are dividend stocks; For example
if you bought the dividend stock. then it will be paid to you every quarter Let’s take you buy Amazon stocks at a low price and Amazon pays every month 2 $ dividend for every share.
let’s say you bought 10,000 shares of the Amazon stock and every share pays you two dollars, then you will receive 20,000 dollars for a total of ten thousand shares.
what are dividend stocks: issues
Finally, let’s again take one example, you bought three hundred shares of the stock on Facebook. you buy the stock, at 20 dollars.
however, you checked all the things through the 10k report. and Facebook paid the dividend every quarter consistently for the past five years.
but after you buy the FB stock. suppose they didn’t pay you any dividend from the next quarter, then what do you do? you can’t determine the future Warren Buffet told us we can’t determine the future. but we can able to predict the future a little bit.
that’s why when you read the annual report of the particular company. which will give you great insight and information about, where stocks are stable for a long time and pay you dividends (or) not, but most people don’t do this.
as a result, if you have any more doubts about what are dividend stocks, then don’t hesitate. feel free to contact us. we are here to help you.