3 Reasons To Buy Dividend Stocks
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Dividend paying stocks can be a great help to an investors portfolio. Find out more.
The cost of equity is the rate of return an investor requires from a stock before exploring other opportunities.
Investopedia explains: Income investing is a term used to describe a style of stock-picking focusing on securities that generate a cash stream - like traditional bonds, dividend-paying stocks and diversified investment structures that basket income-producing equities like mutual funds and ETFs.
The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends. When a business earns money, it must decide whether to use all of its earnings for future operations or to pass some of it along to stockholders through a quarterly dividend check.
Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
Learn about how this number provides a measure of how much systematic risk a firm's equity has compared to the market.
Learn more about the different ways you can calculate your portfolio's average return.
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