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| *Ostroff, Fair and Company>>>Investing |
Are dividends and capital gains paid by the share or by the amount invested? |
Assume I have $1500 to invest, will my dividend be more if I buy 20 shares of an ETF that costs $75 instead of buying 10 shares of an ETF costing $150 assuming the dividend rate is the same? Thanks It is paid by the share. So... if the dividend is the same... go with the cheaper one.. better return. Dividends are paid by the share. by the share. the dividend paid out has nothing to do with the price of the share. the dividend is paid out on the companies profits etc... You do not understand stocks well enough to invest in individual stocks. I'm sure you can learn and I mean no insult, but your question suggests that you are as well off in a casino as in the stock market right now, and doing basically the same thing. There is no answer to your real question, although the answer to what you asked is "per share". However, some stocks do not pay dividends, and some lose money. What you are concerned with in stocks is weighing the risk associated with the stock against the real rate of return. If you have X to invest, your overall risk is lower if you split it between two stocks than if you invest only in either one. You need to learn how stocks work, what Preferred Stock, Participating, Cumulative, Dividend, P/E ratio, Puts, Calls, and Bonds are. You don't have to invest in all those, but you need to know what they are. If you don't understand them, you don't know how they influence the stock you are gambling on, and will probably lose money. I recommend you go to http://www.fool.com and look around. |
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