Do ethnic group buy stocks not to deal in them in few years,but a bit to use dividends as income source long-term?

When one buys a stock, he/she owns a part of that company. hence the profits should be split appropriately between adjectives share holders, right? But I only hear roughly pleople trading to make hurried profits, not hanging on to a stock to sit final and collect income on it. But sharholders dp receive significant dividends annually right? I realize corporations retain some profit in some kind of back up fund, but any owner of a stock does receive profit annually, right?

What form of investment carry the top risk?



Answers:   There are lots investors that buy stocks strictly for dividend income.
There are many companies that reimburse dividends monthly, or pay a roomy percentage of their earning so that they return to the investor become extermely attractive.

The's a whole group of MLPs (Master Limited Partnerships) that income a very handsome per annum return,

You can search some of these dividend payors on within websites http://moneycentral.msn.com/home.asp
http://finance.yahoo.com/
http://www.investors.com/?tn=top
http://www.grahaminvestor.com/

I am clean to stock investing. Which are the best Indian shares where on earth I can invest?


Not all companies repay dividends. It is usually companies that have be around longer, have stronger growth,enjoy enough brass for current growth, etc.

People invest in stocks for different reason and hence their are different stock types to buy.

A common shareholder buys shares within a company mainly for stock price appreciation, voting rights, and also dividends if the company offer any.

A perferred shareholder buys shares of preffered stock solely for a fixed dividend. They have no clainm on the company;s returns beyond the fixed dividend.They will be paid since the common shareholders if the company dissolves but after the crediors are salaried.

Their are long -term stock investors that buy large amounts of shares that want voting rights to establish on the direction of the company. Probably the most famous is Warren Buufett.

How much money will I entail to own within investments (7% returns) if I want to?


No, companies are not required to enjoy a dividend policy. Most growth companies do not have one as they prefer to retain the proceeds in demand to reinvest in profitable projects, but plus companies that are not necessarily seeing large amounts of growth opportunity in their industries do (like Dow Jones Industrials etc, the blue chip stock). It's not a smart move to buy stock surrounded by order to live sour the dividends as the management of a company can transmutation the dividend policy at any time. Besides, why would you do that when you can buy a bond with a guaranteed coupon rate or a treasury beside a 100% risk free semi-annual payment you can count on? The distribution of a dividend is a perogative of the Board of Directors. Some companies regularly do so. Others choose to retain the money within the company because they feel that they can reinvest it more profitably. At any given time shareholders own their repective share of the company. When a dividend is remunerated, the value of a company, obviously, immediately falls by the amount of the dividend.

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