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Question about stock dividends

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Posted: #1
How exactly are these paid out?  If a stock has a 10 percent dividend for example and i invested 10,000 in the stock{lets just say a 1000 shares at 10 bucks a share}, would that mean my yearly dividend would be 1,000 or is the dividend calculated based on what the stock is worth at the time and if the value of my stock is now only 8,000 is the dividend based off that.
I never really knew how this worked and i have been noticing that there are some stocks paying nice didvidends.
Also would like some suggestions for good safe stocks that pay an okay amount.
thanks
cd
 
 
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Posted: #2
Its not the dollars invested per say it is the shares you own.

The percentage dividend is a function of the dividend payout versus the stock price.

So if you have 100 shares of a stock and they give a 4 dollar a year dividend, 1 buck per quarter, you would get paid out 100 bucks every quarter if you owned it before the dividend was declared by the company.
 
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Posted: #3
Quote Originally Posted by wallstreetcappers:

Its not the dollars invested per say it is the shares you own.

The percentage dividend is a function of the dividend payout versus the stock price.

So if you have 100 shares of a stock and they give a 4 dollar a year dividend, 1 buck per quarter, you would get paid out 100 bucks every quarter if you owned it before the dividend was declared by the company.

 

Wallstreet, thanks for the help, but now am still confused.  Lets use citibank for an example.  They are trading at 16.76 per share and it shows that they are paying a 7.40 percent dividend.  Are you saying if i were to buy say 1000 shares, i wouldnt get that dividend payout on the stock, because i bought it after they started giving out dividends?

Also do you have any good suggestions for good stocks with okay paying dividends?

thanks

cd

 
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Posted: #4
cd,

With these financial stocks you never know if they are going to reduce dividends to save cash flow.

In the case of Citi, IF they keep the dividend and you bought 1000 shares, you would make 1,280 a YEAR from dividends, paid quarterly or 320 a quarter.

Now I think Citi will cut the dividend..but maybe they dont, I just think they do.

I would trust a stock like GE to pay a dividend more than a stock like C.

I would also trust a stock more diversified like JPM over C to pay their dividends with less risk.
 
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Posted: #5
Quote Originally Posted by wallstreetcappers:

cd,

With these financial stocks you never know if they are going to reduce dividends to save cash flow.

In the case of Citi, IF they keep the dividend and you bought 1000 shares, you would make 1,280 a YEAR from dividends, paid quarterly or 320 a quarter.

Now I think Citi will cut the dividend..but maybe they dont, I just think they do.

I would trust a stock like GE to pay a dividend more than a stock like C.

I would also trust a stock more diversified like JPM over C to pay their dividends with less risk.

 

Wallstreet, thank you for answers.  I wouldnt trust citibank, i was just using them as an example.

Basically am just trying to find somewhere or something to put 25k into that will get a fair return and not have to worry about losing my money, like everytime i buy a stock happens.  Just want some safe plays, that pay better then what banks are offering. I wish i would have paid more attention to this type of stuff when i was younger instead of spending all my time on this useless gambling stuff,lolllllllll

 
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Posted: #6
Sysco (SYY) has been totally trashed, and it may break like a quadruple bottom at 26ish.
 
Nonetheless, it pays 22 cents a quarter, and sooner than later, it stops going down.  People have to eat, and the gov't is their biggest customer.
 
It may not go up much in price once it bottoms out, but it won't go down.
 
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Posted: #7
Wallstreet -

The news by DRYS today:

  • good news
  • bad news
  • indifferent
I do not know the company well enough to be able to digest it.  What I am hoping is it is not an attempt to pump earnings with a one time event.




 
 
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Posted: #8
Oops . . . wrong thread . . . posted in July stock talk thread now.
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