Question
What are stock dividends?
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2nd Dec 2009 by JonB
Dividends are money paid out by a company to its stock holders. Usually preferred stocks come with dividend pay outs, while common stocks do not, but this can vary from company to company. Dividends make their stock holders money even if the share price doesn't increase. However because of this fixed income attribute, the share price is less volatile and holders of dividend paying stocks may not get the full benefit of a precipitous rise in share price, but they also carry less risk in case of a plunge in share price.
Dividends are money paid out by a company to its stock holders. Usually preferred stocks come with dividend pay outs, while common stocks do not, but this can vary from company to company. Dividends make their stock holders money even if the share price doesn't increase. However because of this fixed income attribute, the share price is less volatile and holders of dividend paying stocks may not get the full benefit of a precipitous rise in share price, but they also carry less risk in case of a plunge in share price.
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26th Nov 2009 In Stocks
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Subjects: stock dividends,