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Dividend Paying Stocks
I have to give to your reader an article printed from the financial component of U.S.A. Today on March 7, 2003 which exemplifies the awesome power of the stock dividend.
MICROSOFT TO ISSUE FIRST DIVIDEND TODAY:
Microsoft investors get their first payday today, once the tech giant shells out its first dividend. At 8 cents a share, the dividend costs this company $850 million. Co-founder Bill gates, the master of about 1.2 billion shares get a dividend of $96.5 million. The dividend marks a shift for Microsoft, which in fact have long hoarded cash - to your tune of $43.4 billion 鈥?for research, acquisitions and legal claims.
Looking at this content I couldn鈥檛 help taking into consideration a written report, we believe stated that there were a predicted 33 million people in America living underneath the official poverty level. Bill gates, by away his Microsoft dividend to opportunity seekers living below the poverty level could create 96 millionaires, each year after year. What boost to your economy that you will find! Imagine the many new millionaires every single year purchasing something except food, Salvation Army clothing and shelter.
Bill gates (by giving away his Microsoft dividend) could commence to eliminate the many hardships for anyone people currently living beneath poverty level. However, I would personally probably start feeling sorry for those individuals were living right inside the poverty level. Possible almost hear Ma telling Pa now, 鈥淚f we merely didn鈥檛 sell those $40.00 property value aluminum cans, we're able to are already millionaires at this time.鈥?In spite of this, those newly created millionaires would most likely begin buying computers full of Microsoft software and Bill gates would start to get his money back. And, if it wasn鈥檛 enough, the newly created millionaires probably hadn鈥檛 read my book! They'd probably begin to use their computers to begin stock trading within the stock and turn out back where they started. Holy moly! I better finish this book or they won鈥檛 stand an opportunity!
(Note: Bill gates and family already have given enourmous amount to charity. It absolutely was announced on CNBC that on April 24, 2003 Bill Gates had just donated 28 million dollars to S. Africa鈥檚 AIDS program.)
As being a definite individual investor inside market for pretty much 4 decades Available that firms that raise their dividend every single year outperform those firms that stop or trim their dividends.
For instance, Dominion Resources had raised their dividend from 1984 to 1994 yearly, and stopped in 1994. Ever since then the business enterprise continues to pay a 64陆 cent a share dividend, having a dividend yield of about 4 percent a year. The stocks performance since 1994 is actually mediocre, rising in price through the 40 dollar range in 1994 within the 60 dollar range in 2004.
Now compare that stock鈥檚 performance with Comerica, a firm having raised their dividend within the past 35 consecutive years. In April of 2003, Comerica鈥檚 stock price was around 37 dollars a share, paying a dividend yield of around 5%. Today, July 20, 2004 the stock closed at $58.28 a share, paying a dividend yield of three.57%. A $21.00 a share move in the stock in Twelve months and 3 months in March of 2005 this company will certainly raise their dividend again for ones 36th consecutive year. (Anyhow, Comerica鈥檚 stock performance within the past 14陆 years (by only obtaining the dividends rolled into the stock) has returned slightly as good as 15% per year, compounded annually.)
The easy point I鈥檓 trying to make could be to obtain those firms that employ a past of raising their dividend every single year. You can get 100s of them. An enterprise which simply pays a dividend is absolutely not best; find those companies having historical record of raising their dividend every single year.
For further excerpts of your book 鈥楾he Stockopoly Plan- Investing for Retirement鈥?visit: http://www.thestockopolyplan.com
Charles M. O鈥橫elia may well be an individual investor with almost Four decades of experience and desire for trading stocks. The article author in the book 鈥楾he Stockopoly Plan鈥? published by American-Book Publishing. The novel can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
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