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In: Finance

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.


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