What is a dividend yield?

The dividend per share (total dividends paid out divided by total number of shares) expressed as a percentage is referred to as the dividend yield.

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• investing
• terms
• dividend
• yield

[MoneyWeekVideos]

sterlingpower - thanks. And yes if you want the CASH dividend in your hand you have to buy before the ex-div date. However if you miss this, the share price will simply correct downwards as you cross from cum-div to ex-div (a specific day, published for all companies). Net result - you pay less for the share because you are not entitled to the next dividend. So it's just a cash flow effect - you don't lose out as such for missing the ex-date.

[sterlingpower]

Tim i do love these videos you are doing.

How long do you have to hold dividends for to get the dividend pay out? I read up about how you must buy before the ex-dividend dates and your name will be recorded by the record date and you are then entitled to the full 5%(e.g) dividend payout. This seems ludicrous, surely people would simply buy the stock, dump it several days later or so and get the full 5% on their investment. Hope you can help, Charlie

[rodctenis]

@aaronmoravek In some jurisdictions the cap gains are calculated with prices adjusted by inflation (cap gains = selling price - buying price adjusted by inflation) as a way to compare apples with apples. I don't know the particular case of USA.

[aaronmoravek]

@rodctenis either you dont understand what I wrote or you don't understand it at all. if you have a net increase you will eventually get taxed for it for cap gains, and you will get taxed for it with inflation. that is what I meant

[rodctenis]

@aaronmoravek But capital gains is applicable when you sell the shares, while you keep them there is no capital gain. What you can have is a tax over the dividends.

[rodctenis]

@MoneyWeekVideos Yes, but investors in stock market don't expect to recover money 100% out of dividends. At least is not the general rule.

[rodctenis]

@robnfc1 Yes in theory, but in practice in many cases dividends are paid quarterly.

[rodctenis]

@robnfc1 I don't know the jurisdiction you are talking about. In many jurisdictions, the dividends go to shareholders holding such conditions couple of days before the dividend is declared (normally 5).

[aaronmoravek]

In the US u can take of 3-5% for inflation(also devalue your stalk) and 15% for cap gains tax then you have nothing

[roundfaceproductionz]

your awesome