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How Dividends Work--Dividends Explained 

Chris Invests
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How Dividends Work--Dividends Explained
Most of us have heard about dividend investing and have a general idea of how dividends work. Companies pay shareholders money on a regular basis and everyone's happy. The businesses are generating a profit and the shareholders are making some of that money, too. In addition to the dividends, the share price increases and you get the best of both worlds. Ideally, that's how it works. However, there are some negative parts of investing for dividends that could actually cause you to lose money. Understand how dividends work and why companies pay them to avoid losing money.

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5 сен 2024

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Комментарии : 54   
@yoursmartmoneytips
@yoursmartmoneytips 3 года назад
Finally- A video that doesn't make Dividends sound like the best thing since sliced bread! Dividends are often short term gain at the cost of better long term gain.
@ChrisInvests
@ChrisInvests 3 года назад
It's important to know the pros and cons of each strategy. Thanks for watching.
@anthonycotterfinance5094
@anthonycotterfinance5094 3 года назад
Dividends and how they actually work is really key to understand. The increase in price before ex div date is so key. Nice share.
@ChrisInvests
@ChrisInvests 3 года назад
Definitely! Not a big deal but something to consider 👍
@citizenoftheyearCC
@citizenoftheyearCC 3 года назад
Love my dividends basically like interest for owning fantastic companies and have them pay me
@ChrisInvests
@ChrisInvests 3 года назад
All while they go up in value :)
@brandon4640
@brandon4640 3 года назад
It this lifetime?
@brandon4640
@brandon4640 3 года назад
What is the monthly rate
@thelevelswithbronia-financ6304
@thelevelswithbronia-financ6304 3 года назад
Nicely explained even for a beginner. Rich content. Love the artwork.
@lukas-vastgoedinvesterings7724
@lukas-vastgoedinvesterings7724 3 года назад
You have explained each type of dividend in great detail and also the effects of the news that a company will issue a dividend. That result of a rapid increase is completely correct. Love it and keep the good work up!
@ChrisInvests
@ChrisInvests 3 года назад
Thanks for watching, Lukas! Like with any type of investing, it can be dangerous if not done properly 🤷‍♂️
@Je.rone_
@Je.rone_ 3 года назад
Dividends are the sweet fruit of stock investing
@ChrisInvests
@ChrisInvests 3 года назад
😄💯
@Thetatraderz
@Thetatraderz 3 года назад
Great overview like always Chris. Dividends can be a key to retirement if you take a long term approach.
@ChrisInvests
@ChrisInvests 3 года назад
That's definitely what it takes...not a get rich quick thing 😄
@SchoolofPersonalFinance
@SchoolofPersonalFinance 3 года назад
Nice video Chris! Many people do not realize that the stock price will go down by the approximate amount of the dividend on the ex-dividend date. That is why it is better to wait until after the dividend date to buy a stock in a taxable account so you don't get a portion of your investment returned right back to you and have to now pay tax on it.
@ChrisInvests
@ChrisInvests 3 года назад
That's a good point. Not a huge deal but something to keep an eye on.
@meowmeow58492
@meowmeow58492 3 года назад
I buy before ex when the price is right, and buy even more if it falls way below after ex, sweet
@Frugal101
@Frugal101 3 года назад
Thank u for sharing this Fanta video I found so much valuable information here will definitely be watching more of ur great videos😊
@RyanGiffin
@RyanGiffin 3 года назад
I’ll never forget the first time I learned about dividends. I was trying to find somewhere to put cash and savings accounts were horrible lol and I came across ATT giving %7 yield and my mind was blown.
@ChrisInvests
@ChrisInvests 3 года назад
Yeah their dividend is crazy 😆
@joesmith201212
@joesmith201212 5 месяцев назад
My question is so how dependable are dividends? You stated it's up to the board how it's distributed so can they take it away or stop paying dividends and what if the company didn't make a profit
@joesmith201212
@joesmith201212 5 месяцев назад
Hmmm you may have answered it later in your video
@Soberdogs
@Soberdogs 2 года назад
Great channel. You explain everything clear and concise. Awesome thanks for the info and knowledge
@ChrisInvests
@ChrisInvests 2 года назад
Thank you for your feedback, I appreciate it 🙏🙂
@IPONerd
@IPONerd 3 года назад
DRIP = Snowball Effect = Faster Financial Freedom :)
@ChrisInvests
@ChrisInvests 3 года назад
Exactly 😁
@VictorEboa
@VictorEboa 3 года назад
Great analysis and well explained Chris, dividend remain one of the safest and easy way of making money. i love dividend, thanks for sharing with us, big thumbs up
@ChrisInvests
@ChrisInvests 3 года назад
Thank you, Victor 🙏
@ELI5FI
@ELI5FI 3 года назад
Great explanation of dividends here Chris 👏 Well done!
@ChrisInvests
@ChrisInvests 3 года назад
Thank you, Rob 😊
@SouthernFoodJunkie
@SouthernFoodJunkie 3 года назад
Great detailed information. I have a few dividend stocks like ATT and Tanger outlets. Although Tanger has bottomed out. I am hoping one day it will be back up.
@ChrisInvests
@ChrisInvests 3 года назад
A lot of people like AT&T! Thanks Ronnie 😁
@SouthernFoodJunkie
@SouthernFoodJunkie 3 года назад
@@ChrisInvests That is in my Roth IRA so it is def a long term thing. Tanger was in my personal investment portfolio. It hasn't done well but the Covid hurt that. I guess I need to buy some more now. I need to find some more hits like NIO. I am looking at Nikola now! I feel it is going to really take off. They make electric semis and now have a consumer truck out. That and back to GM with the launch of the Hummer EV truck. Both look super cool and I feel like they are going to do well. I will be buying some Nikola this Friday after payday haha.
@ChrisInvests
@ChrisInvests 3 года назад
The EV market is definitely going to be big. It will be interesting to see how the current manufacturers compete.
@Yeetmeister_
@Yeetmeister_ Месяц назад
So if I have no job then would a unqualified dividend be untaxed as it is based off my current income tax as I am unemployed
@hamandkev
@hamandkev Год назад
Nice video, though I have a question. How high does dividend yield have to be, in order for it to be considered a “high dividend yield?”
@ChrisInvests
@ChrisInvests Год назад
Usually 3% or more
@baritony8763
@baritony8763 3 года назад
Seemingly objective. Thanks!
@calebstearns250
@calebstearns250 2 месяца назад
If I buy a dividend in 2017 and never get rid of that stock and let say the return was 5% will I get to keep that 5% return year after year as long I leave the original investment money in there?
@jmeegs01
@jmeegs01 Месяц назад
Yes
@calebstearns250
@calebstearns250 Месяц назад
@@jmeegs01 so the ex dividend date doesn’t cancel this? I will have a 5% return indefinitely or just until the ex-dividend date?
@calebstearns250
@calebstearns250 23 дня назад
@@jmeegs01 ??
@TheMoneyPlantChannel
@TheMoneyPlantChannel 3 года назад
Great explanation of dividends! Fantastic vid!
@100perdido
@100perdido 3 года назад
So companies like GM pays a dividend by issuing bonds so the stock holders are borrowing money to pay themselves the dividend. That sounds like a good business model. Maybe I could start a fruit stand and not worry about selling any fruit and just borrow money against the fruit stand and pay myself the dividend. What could go wrong?
@ChrisInvests
@ChrisInvests 3 года назад
It's all in the sales pitch/facade 😁
@VentOutEyes-Channel
@VentOutEyes-Channel 6 месяцев назад
Aka Employees...245A temporary resident card number .. #ComptonCaliLove #worldleaders
@MiloneMoneyMindset
@MiloneMoneyMindset 3 года назад
Gotta love those dividends! Great video Chris!!
@ChrisInvests
@ChrisInvests 3 года назад
Absolutely...thanks Anthony 😁
@turbolenzo
@turbolenzo Год назад
So you need to own the stock at least 60 days before the ex date to receive dividends. I thought 1 day was enough.
@ChrisInvests
@ChrisInvests Год назад
You just need to own it by the ex-dividend date
@lawdog844
@lawdog844 Год назад
Whole term life could be an investment
@TwinJalanugraha
@TwinJalanugraha 3 года назад
Most people buy high dividends stocks not realizing that the high rate happens because the share price has declined. .
@ChrisInvests
@ChrisInvests 3 года назад
Yep, big and common mistake 👎
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