Dividend how much important it for every investor

 

Dividend how much important it for every investor

Dividend how much important for every investor why I choose this topic because this is one of the important factors for every beginner investor so I thought I want to share something about this with you. The dividend which means the company when getting profit then a certain percentage of profit will give to their companies’ shareholders this is the simple definition of the dividend. A dividend is also an additional revenue for investors, all companies will not provide dividends so before going to invest in the company you must analyze the companies’ dividend ratio. All investors have to analyze the company well so all investors require good financial knowledge. The most unsuccessful investors in the stock market biggest drawback are the lack of proper financial knowledge so don’t do that mistake before entering into the financial market you must improve, you’re financial knowledge well otherwise it will difficult for you. Every investor has to analyze the companies’ financial statements and past performance then only you can determine the company’s financial position the financial statements help to determine the asset value of the company, investments, debts of the companies, etc. Most beginner investors didn’t analyze the company well before investing this is the biggest mistake, please don’t do that, try to become a smart and intelligent investor. Before investing every investor have to analyze the management performance well if the management performance not good enough that’s will affect your investments, then you may face many losses. Investors don’t analyze the share price you have to analyze the company’s performance most beginner investors doing this mistake so never do these kinds of mistakes. Proper financial knowledge is the only way to improve your intelligence so try to improve your knowledge through books, articles, etc.

 

The investor what should analyze before the investing 


The investor should analyze something before investing the most unsuccessful investors made mistakes here so here you have too conscious. The investor has to analyze the company not the share value company. Analyzing means the investor has to analyze the financial statements, past and present performance of the company.

1.   EPS (Earnings per share) Value is the most important thing every investor must calculate before choosing the company you have to calculate the long-term value for at least 5-7 years value you have to calculate. 

2.   Long-term value analysis is always good so before going to invest in any company you have to analyze at least five years past performance then only you will get some ideas about the investing.

3.   Deep analyzing is always good so try to analyze deeply like an aggressive investor. Investors have to analyze the debts of the company the company debt ratio should less than 0.4

4.   Investors have to choose high-profit margin companies always.

5.   Investors have to analyze the dividend ratio of the company.

 

 

Why investors have to choose dividend payable companies?


Why investors have to choose dividend payable companies? because the dividend is additional revenue for every investor when the companies get profit then a certain percentage will give their shareholders as the dividend. The companies will pay the dividend as cash or stocks if the dividend is cash that will directly credit to the account. If the dividend-paying as the stocks that will add to their stock’s portfolio. A dividend is an income-generating tool the investor has to keep in mind always before choosing a company.

Where to get more dividends for investor


The investor can invest directly into dividend-paying index funds this is the best option for getting more dividends for an investor before going to invest in any company’s share you must analyze well that company and basic financial knowledge is most important so keep in mind always.

An investor can make dividends from mutual funds?


If the investor want makes a dividend from the mutual fund investor has to invest in a dividend mutual fund. The mutual fund has two types one is a growth mutual fund other one is dividend mutual funds here investors have to choose dividends. Before investing in a mutual fund you must analyze something about this you have to analyze the fund manager term and performance and companies’ future and other factors you must analyze then you have to invest in the mutual fund.

Conclusion

The dividend is the additional revenue for the investor so before going to invest you have to choose the best dividend payable companies and you have to analyze the past five years dividend portfolio of that company so here you must improve your financial knowledge then only you can choose the best company for investing. I’m not a financial advisor I sharing my piece of knowledge with you.

 

I hope this content you understand well 

 

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