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Thread on stocks/etfs dividends & how they can make you money📈💸:
There are stocks/etfs out there that pay dividends but not all do.
First step is choosing investments that pay dividends.
First step is choosing investments that pay dividends.
These will show a dividend yield which is represented with a percentage.
That is the % per share the investment pays and this can be paid monthly, annually, semi-annually.
That is the % per share the investment pays and this can be paid monthly, annually, semi-annually.
For example $IDV is the symbol for ishares international select dividend etf & they pay an estimated 6.16% dividend annually.
The share price changes everyday but we can round to $30 per share.
Based on this, a 6.16% dividend per $30 share is roughly a $1.84 dividend.
The share price changes everyday but we can round to $30 per share.
Based on this, a 6.16% dividend per $30 share is roughly a $1.84 dividend.
this means you will get $1.84 per every share you hold of $IDV
if you were to buy 500 shares of $IDV - you would make about $920 a year passively.
& this is not including the growth of the share price.
if you were to buy 500 shares of $IDV - you would make about $920 a year passively.
& this is not including the growth of the share price.
Dividends fluctuate generally based off of the value of the investment & how the investment is doing.
If they are seeing higher returns, the dividend increases. If they are experiencing losses, the dividend will decrease.
If they are seeing higher returns, the dividend increases. If they are experiencing losses, the dividend will decrease.
You may think that the higher the dividend, the better the investment. This is not true as it is not that simple.
Many factors play a role in this especially what sector it’s investing in but it can get complicated so I won’t go into too much detail.
Many factors play a role in this especially what sector it’s investing in but it can get complicated so I won’t go into too much detail.
Red Flag: Some stocks/etfs may be losing value in their per share price but will increase their dividend to hold on to investors.
These stocks/etfs with an unusually high dividend should be looked into carefully.
You may invest for the high dividend but end up losing your entire principal amount that was initially invested.
You may invest for the high dividend but end up losing your entire principal amount that was initially invested.
This link will take you to a list of investments with high dividends that was posted on twitter to get some ideas.
The dividend yield, frequency of the dividend paid & what date the dividend is paid is all public information and can be found on google.
All investments have a certain date you must hold the position by which is the “record date” in order to get the dividend for that period.
All investments have a certain date you must hold the position by which is the “record date” in order to get the dividend for that period.
