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What is Dividend Frequency?
Dividends are paid at certain intervals by companies who pay them. This might be quarterly, annually, or semi-annually.
The dividend rate that investors should keep up with is the annualized amount, but there is a lot to be said for quarterly or monthly payments, particularly for those actually using dividends as income, but even if you are just reinvesting. Higher dividend payment frequency means higher liquidity, more control, and probably higher returns in your portfolio.
If you’re reinvesting dividends at regular monthly or quarterly intervals, you also have a higher chance of getting a better share price than if you only did so annually, due to the logic behind dollar cost averaging. For people who are using the dividends for income purposes, higher-frequency dividends will of course give the individual a higher degree of liquidity.
On the other hand, budgeting can be more certain with annual dividends, since there is a chance that a quarterly dividend will change unexpectedly. The yield on dividends is an annualized number, of course, so the frequency of dividends will not affect the yield.
What are Tax Benefits of Annuities?
Annuities are unique products in that they provide the owner with tax-deferred growth, much like an IRA or a Roth IRA
Which is Better for Me – a Roth or Regular 401(k)?
One advantage to Roth 401(k)s is that they do not have income limits which may have barred high earners in the past
How Can I Use the Money From My Coverdell ESA?
Coverdell ESA accounts can be used to cover educational expenses. Similar to a 529 Plan
What is a Loss?
A loss refers to reduction in the value of an investment, or in business terms, to having expenses outweigh revenues
What is a Letter of Credit?
A letter of credit is a provided by a bank on behalf of the buyer, to ensure the seller that payments will be made
What is the Law of Demand?
The Law of Demand states that as prices increase, demand will decrease, and vice versa. That is to say, inversely related
What is the Federal Energy Regulatory Commission?
The FERC oversees the interstate commerce surrounding oil, energy, and natural gas
What is Total Return?
Total Return is the measure of all appreciation & interest as well as dividends & other distributions from an investment
What is the Series 63?
In order to solicit orders for any type of security, a broker or representative must pass the Series 63 examination
What is an Unrealized Gain?
A more salient way to understand unrealized gains is to look at the opposite: unrealized losses. If a person makes an...