3. How much do you know about value investing
1. Value Investment
"Value investing is a business based on thorough analysis, the safety of capital and a guaranteed return on capital," Graham said. Operations that do not meet this standard are opportunistic. In layman's terms, it means to enjoy the capital premium brought by the rapid growth of enterprises and share the revenue dividends of high-quality star enterprises.
2. Stocks with high dividend payout
In addition to stocks with stable growth, another advantage of U.S. stocks is that there are many options for high dividend payouts. There are many stocks with high dividend payout, which are relatively volatile and not necessarily absolutely safe.
As mentioned the high dividend stocks, the following will introduce to you the dividend method and the matters needing attention.
If, after a company has been in business for a period of time (usually a year), it generates profits as a result of normal operations, dividends and bonuses shall be distributed to the shareholders. There are three types of dividend distribution: 1. It is paid to shareholders in the form of cash. This is the most common and common form used by more than 90 percent of all firms in the United States. 2 it is the rights issue to shareholders. The main purpose of this method is to keep the funds in the company for expansion, in order to pursue the long-term interests and long-term goals of the company's development. 3 it is distribution in kind, that is, the distribution of a company's products to shareholders as dividends and bonuses.
On the eve of the dividend payout, shareholders who own shares must pay close attention to the four dates related to the dividend payout, which are:
1. The date of declaration of the dividend, that is, the time when the company's board of directors publicizes the news of the dividend distribution.
2. The ex-dividend date, that is, the date on which the current dividend is no longer payable.
3. The date of registration of stock rights, that is, the date on which the distribution of dividends to shareholders participating in the current period is counted and confirmed.
4. The dividend payment date is the date on which the dividend is officially paid to the shareholders.
Of these four dates, 2 ex-dividend date and 3 record date are particularly important. Since there are countless investors to buy or sell on the stock market every day, this means that the company's shareholders are also in constant change. Therefore, when the company's board of directors decides to distribute dividends, it must explicitly announce the date of registration. The distribution of dividends shall be subject to the company's register on that date. Investors who hold the stock prior to the ex-dividend date and continue to hold the stock until the date of registration will be recorded on the register of shareholders, and the company will recognize them as shareholders, entitled to enjoy the dividends and bonuses paid in the current period.
The dividend is taxed at 30% of the stated dividend. If a user holds shares of Coca-Cola on the stock registration date and is successfully registered, a dividend of US $1,000 will be generated. The amount of the dividend on the dividend day will be directly credited to the user's securities account after deducting the dividend tax, and the amount received on the dividend day is 1000- (1000 * 30%) = US $700.
The dividend declaration date of each stock is not the same. You can find the specific information in the RoyalFlush software.
You can also visit the link on Nasdaq's website to find out which companies are paying a dividend most recently, by date. http://www.nasdaq.com/dividend-stocks/dividend-calendar.aspx