What is a dividend?
Let’s say you bought anInvestment property. You paid $400,000 and get$400/week rental income.(That’s $400x52 = $20,800 p.a.)
What is a dividend?
$20,800RENT
You also get “capital gain” if the house increases in value over time.Let’s say your
investment increased in value
by $100,000 over 5 years.
What is a dividend?
$20,800RENT
$100,000Capital
gain
THIS MEANS YOU GET A REGULAR
INCOME (RENT) AS WELL AS GROWTH
IN VALUE OVER TIME (CAPITAL
GAIN).
What is a dividend?
$20,800RENT
$100,000Capital
gain
$$$Capital gain
as share price rises
Regular $$In
dividends
What is a dividend?
$$$Capital gain
as share price rises
Regular $$In
dividendsWe can do the same with our
shares.
What is a dividend?
$$$Capital gain
as share price rises
Regular $$In
dividends
A dividend is an amount of money
paid regularly (typically annually) by a company to its shareholders
out of its profits (or reserves).
What is a dividend?
$$$Capital gain
as share price rises
Regular $$In
dividends
Let’s say our company pays
$1.10 dividend per share each year.Let’s also say the
share price is currently $12.50