Dividends

What are dividends? In short, dividends are perhaps the simplest way to add another stream of income for yourself. Dividends are your share of the profits for the part of the company that you own. If you own more of the company then you will get a greater share of the profits. So if you want your share of a companies profits without the boring conference room meetings or the hassle of starting your own business, buy a piece of another and start collecting money.

How much will you get paid exactly?

You will get paid the amount that the company announces throughout the year and that can be found on the Nasdaq website for most companies. For instance Microsoft (Ticker: MSFT) announced a dividend payment of $0.62 a share which is payable to shareholders on March 3rd, 2022. This is payable to all shareholders who owned Microsoft on or before the record date of February 17, 2022.

Now that you know the exact dollar amount paid for each share you can begin to find the dividend yield or the percentage that you will be paid in dividends. This can be found by r by dividing the dividend payout by the price of the stock to find your total yield. Make sure that you are calculating the total dividend payout for the year when finding the annual dividend yield.