Dividend Stock Examples? Class Many retirees invested in stock that pay dividends so they know that...

Dividend Stock Examples?

Class

Many retirees invested in stock that pay dividends so they know that they will have access to a steady stream of payment each quarter or year. So instead of selling stock in order to pull out of their 401k or retirement fund, they do not touch their investment portfolio but instead live off of the dividend payments!

What are some examples of companies that pay dividends? How much to they pay per share? Would you consider investing in these stocks? Why or why not?

Solutions

Expert Solution

Some example of company who are paying constant dividend are Apple, Exxon mobiles, Microsoft, General electric.

They are paying almost 2% of their stock value in the overall year in order to satisfy the investors.

I will be considering investment into these stocks for regular income and steady income for the longer period of time and even if I am not able to make capital appreciation, then also I will be able to have a realised portion of profits in my portfolio, so I will be trying to take the constant dividend because it is providing me with the constant stream of income and hence I will be investing into the dividend payment stocks.

Dividend will always have an opportunity of realisation of profit whereas capital appreciation are not realised and they will only be booked after I have sold the Shares, hence I will be preferring dividend.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Variable Dividend Stock is expected to pay dividends of $2, $,2, $,3, $4, and $4 over...

Variable Dividend Stock is expected to pay dividends of $2, $,2, $,3, $4, and $4 over the next five years. After that the dividend is expected to grow at a constant rate of 4%. If the return on the stock is 9%, what is the price? Use formulas and show step by step with calculations.

A stock will pay no dividends for the next 7 years. Then it will pay a...

A stock will pay no dividends for the next 7 years. Then it will pay a dividend of $9.62 growing at 4.31%. The discount rate is 11.34%. What should be the current stock price?

(1) What is a dividend and what is the difference between cash dividends and stock dividends?...

(1) What is a dividend and what is the difference between cash dividends and stock dividends? What does it mean when shares of stock are outstanding? (2) Please explain what is meant by the terms “Date of Declaration,” “Date of Record,” and “Date of Payment” when referring to cash dividends. (3) What type of account is the “Cash Dividends” account? (4) On March 15, the board of directors of Beer Incorporated declared a $0.20 per-share dividend on its common stock...

Lincoln Motors does not pay dividends currently but plans to pay its first dividend of $1.00...

Lincoln Motors does not pay dividends currently but plans to pay its first dividend of $1.00 three years from today (D3). The dividend will grow at 10% in years 4 and 5 and after year 5 will grow at 3% forever. Find the price per share of Lincoln Motors if the required rate of return is 8%.

The current stock price of Alcoa is $115, and the stock does not pay dividends. The...

The current stock price of Alcoa is $115, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%. The instantaneous standard deviation of Alcoa's stock is 35%. You want to purchase a put option on this stock with an exercise price of $120 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold __________ shares of stock per 100 put options to hedge your risk.

A security is expected to pay a dividend of $2.50 next year. In addition, dividends are...

A security is expected to pay a dividend of $2.50 next year. In addition, dividends are expected to grow at 4% per annum and investors have a 12% required rate of return. a. What will the dividends be in each year for the next 200 years? Set this up on an excel spreadsheet with the years going down a column using Excel. What is the present value of the above dividend stream ? What is the sum of the dividends expected...

The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on...

The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the corporate valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Free cash flows are generally forecasted for 5 to 10 years, after which it is assumed that the final...

The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on...

The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Free cash flows are generally forecasted for 5 to 10 years, after which it is assumed that...

Stock that doesn't pay a dividend is trading at $5. A riskless bond that will pay...

Stock that doesn't pay a dividend is trading at $5. A riskless bond that will pay $100 after a year is trading at $94. A European call option on the stock with strike price of $60 and one year to maturity is trading at $6.1. Devise an arbitrage strategy and prove that it works in all scenarios.

What are cash dividends and how are they recorded? What is a stock dividend?

· What are cash dividends and how are they recorded? What is a stock dividend?· What is the purpose of the cash flow statement and how do we prepare the indirect method?· What is an extraordinary item and how are they recorded?· What is horizontal and vertical analysis and how do you prepare?

Subjects