FAQs tagged as

Income Investing

  1. Why do some companies pay a dividend, while other companies do not?

  2. What is a dividend?

  3. What happens during the spending/gifting phase of an investor's life cycle?

  4. What is the double taxation of dividends?

  5. What is the difference between preferred stock and common stock?

  6. How does a stock split affect cash dividends?

  7. Why don't investors buy stock just before the dividend date and sell right afterwards?

  8. Why would a company make drastic cuts to its dividend payments?

  9. What is the incentive to buy a stock without dividends?

  10. Why do some preferred stocks have a higher yield than common stocks?

  11. I would like to invest in a dividend-paying stock. How can I find out which stocks pay dividends?

  12. Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).

  13. Is there such a thing as a foolproof stock-picking strategy?

  14. What is a DRIP?

  15. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  16. Is a company allowed to reduce its dividends?

  17. Can a company declare a dividend that exceeds its earnings per share?

  18. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  19. Are ETFs required to pay out a percentage of income as dividends?

  20. Which is better a cash dividend or a stock dividend?

  21. If I sell my shares before the ex-dividend date will I still get the dividend?

  22. Why would a stock that pays a large, consistent dividend have less price volatility in the market than a stock that doesn't pay dividends?

  23. Does a stock dividend dilute the price per share as would a forward stock split?

  24. Can a corporation deduct dividend payments to shareholders before taxes are calculated?

  25. What effect does a company's dividend reinvestment plan have on its stock price?

  26. Do I receive the posted dividend yield every quarter?

  27. If a company moves its dividend record date forward, does the ex-dividend date change too?

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