Blogging on “Dividend Growth Investor”
When a publicly held company makes a profit, they can either invest the money back into the business, pay the shareholders a dividend, or both. A dividend can either be paid in more stock or money. Dependent upon different company factors, dividends can vary significantly. A high dividend is usually equated with more risk.
When evaluating dividends, it is important to look at several factors. Has the dividend grown over time or at least been stable? Does the dividend pay a better return on your investment than a certificate of deposit? If not, unless the price of the stock is appreciating in addition to the dividend, it is usually not worth the added risk inherent with stock. Is the company financially stable? If not, the company may reduce the dividend or eliminate it.
If you’re interested in investing your money in stocks with dividends, the “Dividend Growth Investor” can help you. The blog’s author can help you learn more about dividend investing and which companies are the best to invest in. Check it out today!
URL: http://www.dividendgrowthinvestor.com
Author: Unknown
Start date: January 2008
PageRank: 3
Categories: Stock dividends