Tag Archives: Dividends

Reinvesting Dividends – Minimize Cash

Most companies that provide dividends when you purchase their shares also offer an option to reinvest the dividend without incurring a fee. This option is a good way to compound the return. However, the reinvested dividend usually only buys whole shares and not a fraction of a share. The means that some of the dividend is returned as cash. To gain as much of the compounding as possible, selecting the number of shares to hold becomes very important. A guide to doing this is provided as well as a spreadsheet to help in assessing the impact. More

Using Yearly Rates to Compare Stocks Prices and Dividends

Using Yearly Rates to Compare Stock Prices and Dividends ChartWhile past performance is not a predictor of future returns, companies that have consistently meet their long-term yearly growth rate for stock price and dividends deserve close scrutiny. However, it is not always obvious which company’s combined yearly stock growth rate plus yearly dividend growth rate is better than that of another company. An Excel spreadsheet can be downloaded that takes the yearly stock price and dividends rates and projects the stock prices and dividends 5 years into the future, determines a final value using taxes and  charts them so you can easily compare companies. More

Determining Yearly Rates for Stock Prices and Dividends

There is a lot of information available to help you evaluate a stock you might be considering. The long-term yearly rate by which the stock price and dividends has increased (or decreased) is an important statistic that is not easy to find, without paying for the analysis. An Excel spreadsheet can be downloaded that you can use to generate this information. The resulting yearly rate for both the stock and dividends can be used in FinanceBase-Lifetime Finances to help project the long-term cash flow. More