/biz/ - Business & Finance

>>12201697
3% of the stock's sticker price per year. subject to change without warning.

>>12201697
3% Is the yield. It means based on the current market price, you get 3% of that as dividends.

% of profits paid as dividend is a different metric to calculate dividends and is known as the payout ratio. Which is the one you are referring to.

>>12201715
Damn thats a lot of ID 'u'

>>12201697
https://www.dummies.com/personal-finance/investing/online-investing/how-dividends-work/

>>12201715
>>12201746

so if I own one share of $100 stock, I get $3 in dividends?

If I owned two shares, I would get $6?

>>12201758
Yep. But the stock price will move but the cash amount of divided will be the same. So the yield% will vary based on the change in market price.

>>12201758
that's the gist of it.

>>12201778
>>12201771

holy shit that's awesome.

>>12201830
it's over rated. don't buy stocks just for the dividend. and 3% is nothing burgers

>>12201758
Seems pretty powerful, right? Like free money?
It's why a lot of investors focus on dividend stocks that annually increase their dividend and that have market defenses against new companies, also known as MOATs. I know a number of very rich people who follow this strategy. Also, unless you're trying to retire early, automatically reinvesting the dividends is key.

>>12201758
if the company is paying out $3 in dividends yearly and the current stock price is $100, the yield is 3% per share.
usually dividends are paid out every quarter out of any profits made.
so you will get $0.75 every quarter for every share you own.
stock prices fluctuate and so will the yield. if the stock price increases, the yield goes down. if the stock price decreases the yield goes up.

the yield only matters for the price you purchased the stock at.

>>12201981

Im confused again now

>>12201758
>>12201875
U know best fucking dividend stock? Coca motha fucking Cola average gains on stock are 3% and dividends are 3% and rising put in 3mill your making 90k in dividends alone...

I wanna be a Coca Cola kid..

>>12201991
4 quarters in a year.
$3/4 quarters= $0.75 paid each quarter

>>12201697
Yes, but buying stocks for the dividend is fucking stupid. If you wanna buy stocks for the cash they return to shareholders, buy them based on dividend AND buyback yield (you can sell a proportional stake to maintain the same % ownership in the company, this is effectively the same as if they paid a dividend).

>>12201830
It's awesome until you realize that 3% is the MINIMUM required to fight the passive inflation alone (i.e you end up at a net zero gain due to inflation), and stocks with a div yield higher than a few percent are usually shitty stocks trying to bait capital

>>12202575
Yea, pretty much this. Meaningful passive income seems to be next to impossible through dividends. They're just the mint on the pillow and no one keeps alive by just eating mints.

>>12202667
I'll eat the mint on Ford's pillow.

You get 3% of the total profits of the company, it is why companies never have more than 27 shares issued at any given time. Then they would be unprofitable.