When it comes to dividends, an important factor is their yield, as it indicates how much of the investment we can recover solely through dividend distributions.
Typically, it's calculated before taxes, known as the gross dividend. It's expressed as a percentage and calculated by dividing the investment's earnings by the amount invested:
Yield (%) = (Earnings / Initial Investment) * 100.
For instance, imagine a company's shares trading at $60, with an upcoming dividend of $1.5 per share. By applying the formula: (1.5/60) x 100 = 2.5, the dividend yield materializes at +2.5%.
This means that shareholders in that company can expect a return of +2.5% of their initial investment each time dividends are distributed, irrespective of their investment size.
It's crucial to recognize that dividend-oriented investments can take two paths: investing in individual company shares or opting for specialized investment vehicles. In the latter category, we find investment funds like:
Turning to ETFs, notable options encompass:
Furthermore, there are individual stocks presenting enticing dividend opportunities:
With this foundation set, let's now delve into four stocks boasting attractive dividend prospects, leveraging insights from InvestingPro.
Formerly known as Philip Morris (NYSE:PM), Altria is an American company with a focus on food, beverages, and tobacco products. Headquartered in Virginia, it boasts the renowned Marlboro brand and holds a significant stake in Anheuser Busch Inbev (NYSE:BUD), along with its acquisition of Kraft Heinz (NASDAQ:KHC).
On October 10, Altria is set to distribute a dividend of $0.98 per share. This marks an increase from its previous dividend of $0.94. To snag this dividend, make sure you're holding the
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