Hey anyone familiar with dividen stock pay outs? If one is invested in a stock that pays out bi-anual dividens. Is it paid out in a lump sum? Like the combined total of those 6 months?
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A bi-annual dividend is a dividend you receive twice a year or as you pointed out every 6 months. So youāll collect a sum of money per share of stock you own equal to half the annual dividend payout each time you receive it.
For example a stock has a $2 annual dividend that is paid out bi-annual. That means for each share of that stock that you own youāll receive $1 every six months. If the annual dividend were $2 but paid out on a quarterly basis, youād receive $0.50 per share every 3 months.
Lastly, dividend for income is an investment idea that looks incredibly attractive on the surface but dive into the numbers. How much money do you want to come in from dividends per month to afford the lifestyle you want? Now, calculate how much of the underlying stock itself youād need to own to generate the amount of dividend you want.
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Right. I did the numbers. For this specific stock. They went from 18cents a share. To 21cents a share. And its at 19.60 for a share.
So if I want 1k a month.
1000 Ć·0.21= 4761 shares needed
So 4761 shares x the price of the share at 19.6= 93.3k needed to hit that goal. That number becomes bigger or smaller depending on dividen payouts increasing or decreasing and stock price
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Correct. Youād also be pretty heavily exposed to risk as the principle price fluctuates or the dividend is cut. You could diversify the stock portfolio and be getting similar monthly dividend payouts but have different stocks youāve bought into and thereby diversifying risk.
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Oh absolutely Iām gonna diversify. I might pick a stock or two to invest more in that I think will grow big. But Iām gonna find 4 other dividen stocks to buy shares in. Then do the math for how much shares is needed for each stock to generate 200 a month. Then add those numbers for my new target goal. Or would you diversify more than just 5?
Also how does the payout for dividens work? Are they gonna pay me directly to my brokerage account?
Definitely keep learning about the investment process! If I was doing a dividend portfolio Iād diversify beyond 5 stocks, probably something closer to 10 to 15 different holdings. Thatās just how I would do it, but once you learn more your outlook might be different.
The dividend payouts are paid directly into your brokerage account. Thereās also another option called ādividend reinvestment planā or āDRIPā where instead of the dividend going into your brokerage account as a debit, itās instead reinvested back into the company thatās paying you said dividend.
Yeah DRIPs have advantages. Such as they are reinvested without any cost. So at higher payout numbers you not getting hit with the higher fees and commissions. And yes Iāll keep on learning and see how I wanna go about it further. Thanks man
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I use M1 Finance for their DRIP program. DRIPs off every $10 dollars you have invested, also remember that dividends count as taxable income so I use a Roth to avoid penalties.
So based on what I looked up. Tell me if I understand this right. When you receive your dividen payout. You then put it in your roth Ira. But youāre not reinvesting it in the stock? Also this benefit is only helpful should you wait till 59.5 years old to touch the money correct?
According to CNBC
Day High $2,235.00/oz
Day High $1,866.80/oz
Damn, both gold and palladium destroys platinum. Platinum is now cheap metal 
So Iāve invested about 1900 dollars into Moderna stock. The company that is working on the Corona virus vaccine. In just 2 days Iām up almost 5% Now whether this stock is a winner or a bust long termā¦ is entirely dependent on if they can produce a working vaccine by the end of the year as planned.
So with that being said. Is it wise to continuing investing more into the stock as it goes up? Or just leave it and only invest should it drop?
Dude, thereās literally hundreds of CoVid vaccines in the pipeline. Moderna is just one of them.
Also, Moderna was in business long before CoVid was a thing. If the vaccine doesnāt work out for them, it was never part of their business model anyway.
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I personally would ride the wave and bail once the hype starts to die down. There is always a chance their vaccine fails in trials, which is why I generally avoid investing in biotech. Most of their stock price is entirely based on hype/rumors and very few of them ever deliver the goods. I am usually happy just getting my gains and bailing early even if it means I donāt make as much as I could have.
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Yeah I looked at their financials and theyāve yet to become profitable. So it is purely off the hype of the vaccine their stock value is coming from. Several articles agree they are a buy now sell now company. Unless you want to roll the dice on the vaccine and stick it out.
Also Capcom which I sold my shares of at a loss is up by 2.2% So kicking myself for that. Gotta invest for the long haul.
Iām personally not touching the vaccine stocks. One of them (if not more) is going to pull through, but if they donāt then their prices are going to be depressed unless they have more potentially potent drugs in their pipeline. I thought Pfizer was a pretty good value deal at $32 per share with their fat dividends and high floor value.
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I dont blame you for being cautious. The vaccine stocks are so volatile. Today it had a high of a 4% gain. Then within hours dropped by 5-6%. Only at the last hour of trading. To rally to a 1.5% gain for the day. Crazy
Pfizer is Big Pharma. Theyāre going to be just fine vaccine or no.
Ah so they would be the safer bet. Moderna is the risky one huh?
Moderna would probably also post the bigger gains if they do win the vaccine race.
But yeah- between the two money is probably much safer in Pfizer. Pfizer already makes plenty of money in the real world, Moderna isnāt there yet.
An article about Moderna and other companies progress with their vaccines and possible price points. Apparently Moderna was the first to enter stage 3 trials.
https://www.ft.com/content/405c0d07-d15a-4f5b-8a77-3c2fbd5d4c1c