Discover and read the best of Twitter Threads about #dividendinvestingseries
Most recents (2)
Ratios to study while selecting stocks for Dividend-Investing.
✨DIVIDEND PAYOUT RATIO
✨DIVIDEND YIELD RATIO
A Thread🧵
#threadbytradersushma
#dividendinvestingseries
1/20
✨DIVIDEND PAYOUT RATIO
✨DIVIDEND YIELD RATIO
A Thread🧵
#threadbytradersushma
#dividendinvestingseries
1/20
2/20
DIVIDEND PAYOUT RATIO & RETENTION RATIO
The dividend payout ratio (DPR) is the ratio of total amt of dividends paid out to shareholders relative to the net income (earnings after tax & interest) of the company.
It is % of earnings paid to shareholders via dividends.
DIVIDEND PAYOUT RATIO & RETENTION RATIO
The dividend payout ratio (DPR) is the ratio of total amt of dividends paid out to shareholders relative to the net income (earnings after tax & interest) of the company.
It is % of earnings paid to shareholders via dividends.
3/20
Total earnings of a company comprise of 2 parts ~
🔹Dividend payout ratio (the dividend it pays) &
🔹Retention Ratio (the amount it retains for re-investing in the business).
Eg.
Total earnings of a company comprise of 2 parts ~
🔹Dividend payout ratio (the dividend it pays) &
🔹Retention Ratio (the amount it retains for re-investing in the business).
Eg.
2/13
Why does companies pay Dividends?
✅To attract investors & increase the value of their stock.
✅To reassure investors about the companies financial health.
✅To increase the investors’ confidence in the companies ability to generate earnings.
Why does companies pay Dividends?
✅To attract investors & increase the value of their stock.
✅To reassure investors about the companies financial health.
✅To increase the investors’ confidence in the companies ability to generate earnings.
3/13
✅To increase the demand for the stock as many investors seek regular income in the form of dividends & they would buy more of such dividend distributing cos.
✅To increase the demand for the stock as many investors seek regular income in the form of dividends & they would buy more of such dividend distributing cos.
