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Above are the Highest Paying Dividend Stocks and ETFs, feel free to play around with the filters to find the right stock or ETF for you. You may also be interested in:
Here is a List of the 5 Best Dividend Yield Calculators
1) TipRanks
Where Can You Invest in these Dividend Stocks?
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Definitions
Share Price: Price of a single share in a company.
Annual Dividend Per Share: The amount of money paid out yearly per share.
Dividend Yield: The ratio of annual dividend to share price.
Money Invested: The total amount of money invested in shares of the company.
Number of Years: The duration of the investment.
Compound Frequency: How often the dividends are added to the money invested.
Final Balance: The total sum of money at the end of the investment.
Profit from Dividends: The amount of money gained from company payments.
What is a Dividend?
A Dividend (or stock dividend) is a payment made by a company to its shareholders. The payments are usually derived from the company's profit, kind of like a "thank you" gift or bonus. Dividends are one of the ways an investor can earn a return on stocks (Income investors like these). Not all stocks however, pay dividends.
Dividends are usually paid out either at every month, quarter (most common), semi-annually, and annually. Publicly traded companies are not required to pay dividends. On the other hand, a private company may choose to reward its stakeholders with dividends and share a portion of its profits.
Dividends are paid out per share of the stock. For example, if a company pays out a $5 dividend ever quarter (quarterly distribution), and you own 20 shares in this company, you will receive $100 in dividends quarterly.
How to Calculate a Dividend Yield? - Dividend Yield Formula
This equation is a practical measure that expresses the annual amount of how much is distributed as a percentage (Dividend Yield). You could also describe the dividend yield as the ratio of a company's annual dividend to the company's share price. Check below to learn how to calculate dividend yield:
Annual Dividend / Stock Price * 100% = Dividend Yield
Example
Investing $1000 in a dividend-paying stock for 2 years. The dividend is compounded yearly, meaning it is added each year and used to buy new stock. Assume the share price is $50 and the annual dividend is $3.50.
This would make the Dividend Yield = $3.50 / $50 = 0.07
Then, $1000 * (1 + 0.07/1)^(1*2) = $1,144.90 would be the final balance
Investing $1000 with a 7% dividend yield would result in a $144.90 profit after two years and total $1,144.90 assuming all the dividends after each year go into buying additional stock.
Investing in the Financial Markets involves Risk and the Potential to Lose Your Entire Investment will Always Exist. Only Invest with Money You Can Afford to Lose.
Will You Use These Calculators? Do You Own Any Dividend Stocks or ETFs?
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