To The Moon

Hey, tigers

As a retail investor, there are many sad things, one of which is missing a dividend stock.

In the latest quarter, $ZIM Integrated Shipping Services Ltd.(ZIM)$ (insert target) is super generous!The company's management actually took half of the profits to pay a dividend; specifically, a dividend of $17 per share (note: the stock price is less than 80).

In the current economic environment, such operations are still very heartwarming.

Some people may not understand the dividend. Take this opportunity, today I will give you a more comprehensive popular science ~

Bonus Tip: Looking down, at the end of the article, I have listed the "US Stock Dividends List in 2021" for you.

1.The concept of dividends?

Generally speaking, dividends are the benefits that joint-stock companies bring to shareholders.But the dividend rate are also different among different shareholders .

For example, preferred stock has a fixed dividend rate; but for retail investors, the dividend rate is Schrodinger's, as common shareholdersshare the profit after the distribution topreferred shareholders.

2. Method of dividend distribution

Most U. S. listed companies are using cash dividend, investors can withdraw the cash dividend or reinvest to other items you like.

So if you buy a certain stocks andgoing toreceive cash dividend, how much money youcan get?

There is a formula here：Dividend income = number of shares held * cash dividend per share.

Let me take $Johnson & Johnson(JNJ)$ as an example.The company's dividend rate in 2021 was 2.6%, significantly higher than the 1.6% average of the S&P 500 at that time. And it's worth noting that the company has raised its dividend for 58 years in a row. Isn't that awesome?

Some companies like this way, but some companies do not like this operation, such as Legend investor Warren Buffet's $500,000 Berkshir Hathaway doesn't like to give cash dividends, mainly because shareholders have to pay income tax when they withdraw the money. As we all know, the tax in the United States is really heartbreaking.

In addition, there are also reasons why some enterprises do not pay cash dividends. For example, for a growing enterprise, if the annual profit is used to invest in production, it can actually create greater value.

3. What are dividend dates?

Investors holding dividend stocks should be aware of four important dates:

• Declaration date: The date a company’s Board of Directors announces an upcoming dividend payment.

• Ex-Dividend date: The day on which shares bought and sold no longer carry the right to the previously announced and yet-to-be-paid dividend. If you own a stock before market open of the ex-dividend date, you are entitled to the dividend. If you purchase a stock on or after this day, you are not owed the dividend.

• Record date: The day after the ex-dividend date, and the date the company uses to determine its shareholders or “holders of record.”

• Payment date:The day a dividend will be paid to a stock or fund owner.

4. What are the benefits of dividend stocks?

Dividend stocks often provide a steadier source of income than growth stocks, allowing investors to build wealth without selling their shares.

But the true wealth-building power of dividend stocks comes with reinvesting. Funneling your dividends back into your portfolio allows you to benefit from compound interest, so you continue to profit from dividends long after they are initially paid.

Bonus For You:

Data from Wind, Chart Made by Capital_Insights

①5 stocks($(PXD)$,$(LMT)$,$(AMGN)$,$(WHR)$,$(NOC)$)rise in 2022；

②9 stocks ($(CME)$,$(ESS)$,$(PSA)$,$(IBM)$,$(GWW)$,$(AVB)$,$(RE)$,$(UPS)$)declined between 1%~5%,；

③7 stocks ($(BLK)$,$(AVGO)$,$(EQIX)$,$(GS)$,$(HD)$,$(SPG)$,$(EXR)$) dropped more than 13% in 2022.

Question For You:

Which company's dividends have you enjoyed? Share your opinions with me~

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Video: Dividend Investing