Comments on: Passive Income idea: Dividends http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/ Personal Finance and Wealth by the Penny Fri, 25 Jul 2008 10:01:01 +0000 http://wordpress.org/?v=2.6 By: Chris http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-336 Chris Fri, 17 Nov 2006 06:50:41 +0000 http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-336 I'm a friend of dividends too. Nothing is better in an undecisive market and for the lazy investor. Buy some stable and solid companies and live your life like you want it. Who needs junk stocks? ;-) Chris, http://www.nomad4ever.com I’m a friend of dividends too.

Nothing is better in an undecisive market and for the lazy investor.

Buy some stable and solid companies and live your life like you want it.

Who needs junk stocks?
;-)
Chris,
http://www.nomad4ever.com

]]> By: thatedeguy http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-335 thatedeguy Thu, 16 Nov 2006 16:58:36 +0000 http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-335 Right you are. Not sure how that Quarter got in there. I've fixed it now. thanks for pointing that out. Right you are. Not sure how that Quarter got in there. I’ve fixed it now.
thanks for pointing that out.

]]> By: samerwriter http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-334 samerwriter Thu, 16 Nov 2006 16:50:27 +0000 http://www.penny-saved.com/2006/11/16/passive-income-idea-dividends/#comment-334 I think your math is incorrect. On a $20 stock, a 5% yield is $1 per YEAR, or $0.25 per share per quarter. Also, it's useful to remember that high yielding stocks are often those whose price has decreased significantly (thus the high yield). It's not uncommon for the dividend to be decreased. If you're counting on the dividend for income, it's probably best to stick with established companies, which also generally means a fairly modest dividend. I think your math is incorrect.

On a $20 stock, a 5% yield is $1 per YEAR, or $0.25 per share per quarter.

Also, it’s useful to remember that high yielding stocks are often those whose price has decreased significantly (thus the high yield). It’s not uncommon for the dividend to be decreased.

If you’re counting on the dividend for income, it’s probably best to stick with established companies, which also generally means a fairly modest dividend.

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