Dividend Jumping: Part Two
By Jim Bauer
@porwest (90917)
United States
February 19, 2021 6:41pm CST
What is a dividend?
Before we get into the meat of the matter, I think, for those who are not familiar, we dig in a little bit about what a dividend is.
Certain companies, REITs (which is an acronym for "real estate investment company"), or ETFs (an acronym for "exchange traded fund") give shareholders a piece of their profits. When you buy a share of stock, or a share of a REIT or ETF, you are buying a piece of their business. You essentially own a piece of their company.
Companies that you own a share of share their profits with you. This is called a "dividend." Most companies pay this on a quarterly basis. But some pay it on a monthly basis, but that is rare.
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3 responses
@LindaOHio (178701)
• United States
20 Feb 21
This should be helpful for the novice investor. Nice post.
1 person likes this
@123TikTalk (36)
• United Arab Emirates
20 Feb 21
Sounds interesting. ??
Does your method applies to stock markets all over the world or just in the US stock market?
1 person likes this
@porwest (90917)
• United States
21 Feb 21
I think potentially it COULD apply to other markets. But a lot depends on how markets in a particular country work, how they deal with dividends, and what kind of access regular people have to the markets. Not sure how it works in the UAE. I do know in Canada and the UK primarily, and even certain Asian countries, their markets are all modeled after the U.S. markets and work similarly.
