The dividend rate is basically just the value of the annual dividend of a company, stated as the monetary value. Not to be confused with the dividend yield, or the dividend growth rate, both of which are percentages.
Dividend yield and dividend rate are slightly different from one another. The dividend yield is the size of a dividend in relation to the share price, and is stated as a percentage. The dividend rate is actually the amount of money paid out per share, per year, stated as a dollar amount.
So the dividend rate of a stock this year might be $2.00, and its dividend yield might be 2%. The dividend rate might alternatively be $0.50 a quarter, with the same yield of 2%.
Once a company has set it’s dividend policy and frequency, it is unlikely to change it. The dividend rate on preferred stock and bonds will not change, but the dividend on common stock will fluctuate with earnings, if it is paid at all.
If you aren’t completely sure what a dividend is, it is an amount paid to shareholders, on a per-share basis, when the company is profitable and has chosen not to retain the earnings. This is also different than the dividend growth rate, which is the increase in a dividend payout from year to year.
Yes, you can pay more than nominal value for a bond. And this is part of what’s called the interest rate risk of bonds
Generally a plan will allow you to leave your assets in there indefinitely, but this is probably not ideal for you
Variable Universal Life Insurance benefits the very wealthy, since there is no cap on contributions or income for eligibility
Generally a life insurance company will have to pay a death benefit once the contestability period of two years has passed
B+/B1 is within the range of ratings given to High Yield Bonds, also known as Junk bonds
Expenses for tuition, room, and board at a secondary education institution can be loaned to a student and paid over time
Federal income taxes are paid by individuals in proportion to their earnings, after reducing the considered earnings
Tangible Net Worth is another word for Book Value or Net Asset Value. Only the tangible assets and cash are included
Trading models are emotionless systems for decision-making in trading that can be automated or just used for reference
Blockchain is an emerging technology and arguably one of the next “big things.” As with anything so big and impactful, it comes with a few issues and limitations