How about living with dividends without working?
Those are few sample of dividends received.
Companies can declare dividends because of their good financial standing and can encourage shareholders that they are receiving returns from their investment.
Dividends can be in the form of cash, stock and property dividends. Most stable and secure companies can distribute dividends.
The board of directors make decisions if the company’s earnings can be share to stockholders or reinvest like plant expansion, or entering into new market and launching of new products.
Three important dates to remember:
1. Date of declaration
2. Ex Date
3. Date of payment
Date of Declaration-
The date on which the board of directors announces to shareholders and the market as a whole that the company will pay a dividend. In many cases, the stockholders meeting can be the date of declaration and later will be disclose in PSE.
(Heto yung time kung kelan napagkasunduan ng board of directors na idistribute ang earnings ng company for the stockholders to be happy)
On (or after) this date the security trades without its dividend. If you buy a dividend paying stock one day before the ex-dividend you will still get the dividend but if you buy on the ex-dividend date, you won't get the dividend.
Conversely, if you want to sell a stock and still receive a dividend that has been declared you need to sell on (or after) the ex-dividend day.
Few days before the ex-date, the usual movement is for the stock to goes up because of the buying pressure that could push it’s price then on the ex-date most of traders sell their stocks because they earned already from price momentum.
(Heto yung time kung saan ang mga traders ay nakabili na days before pa lang ng ex-date. Halimbawa DMCI stock dividends on October 14, kailangan meron ka ng hawak on the 13th para entitled ka na, kung bumili ka on October 14 then hindi ka entitled sa dividends).
Date of Payment
This is the date company mails out the dividend to the holder of record.
This date is generally a week or more after the date of record so that the company has sufficient time to ensure that it accurately pays all those who are entitled.
On the date of payment , you will received an email from your broker that you received the dividend payment. (Minsan nalalate dahil dumadaan pa to sa clearing process)
P.S. I WILL BE LAUNCHING A NEWBIE PROGRAM THIS COMING 1ST WEEK OF DECEMBER.
I WOULD LIKE TO ENCOURAGE YOU TO JOIN ON THIS PROGRAM. FURTHER DETAILS WILL BE ANNOUNCE AT THE END OF MONTH.