![]() ![]() So, when the Mercury company pays a dividend of 4%, then you as an investor will have an overall income of 9%, if you have invested in Mercury ltd and if stock price decreases then you will only lose 1%.īut if you have invested in Neptune ltd which does not pay you dividend then with price appreciation you only gain 5% but if the price decreases by 5% then you will lose the entire notional gain. Learn basics of investing with Stock market made easy by Market Experts So, if stock price of both the company rise by 5% you earn 5% and vice-versa you lose when stock price decreases by 5%. Mercury ltd pays dividend and Neptune Ltd. This kind of investment boosts the dividend growth kind of investing for better returns in the long run.įor example: You have 2 companies namely MERCURY LTD. When the market is bear the dividend received is reinvested and more shares are accumulated during that time. ![]() This exponential power of dividend investing growth provides a competitive return to the investors even if share price does not increase. So, as the dividends per share continue to grow, investors will enjoy the benefit of exponential growth. List of 10 Best Dividend Paying Companiesĭividends provide us with an ongoing income while we wait for capital appreciation. ![]() How to Identify the Stocks with High Dividends? The investing strategy that investors adopt is known as a dividend investing strategy. Most retired individuals see a high dividend yield stock as a passive source of investment for themselves. ![]()
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