how often dividends paid
The gigantic bull market of 1982-1999 changed the landscape of investment dramatically, making growth investors out of everyone new to investing. All thanks to discount brokerage like E*trade and Ameritrade, investing was available like ever before. Between the periods of 1983-1999 the percentage of US households involved in the market jumped from 19% to 49%. With the stock prices rising higher day by day in the late 90’s, investors demanded growth, not boring payouts. One of the most quoted statistics about the stock market is the view that stocks have returned average annual gains off 10% since 1926. The fact which is quoted very less is that nearly half of these gains came from dividends. The contributions of dividends to overall gain increased even more during the latter half of the 20th century. For example- If you had invested $1,000 in the stock market in 1960, it would be worth $114,000 by April 2008. However, if you remove the dividends, that same $1,000 would have only grown to $24,000. So this highlights the fact quite well. Since majority investors fail even to match the market’s performance, anyone interested in making real wealth from investing, needs to have some income plays in his or her portfolio. Figuring out whether or not a company’s share price will rise always entails a degree of uncertainty. However Dividends, on the other hand, offer investors steady, predictable payments. They offer a degree of certainty that is uncommon in the markets. And in a climate like today’s, having some extra income to buffer against capital losses is a safe strategy to employ. Several investments are actually designed for large payouts. The most common examples are Real Estate Investment Trusts (REITs). REITs typically own large amounts of property and rental yields are used to pay out large dividends to their shareholders. In fact as long as the REIT pays out 90% of its earnings to shareholders, it pays little if any corporate income taxes. REITs right now are closely associated with the housing situation. There are likely some real gems amidst the rabble. Master Limited Partnerships (MLPs) on the other hand, are a whole other story. Like REITs, MLPs pay very less in corporate taxes provided they pay out 90% of their income to shareholders. However, they’re primarily involved in energy, not real estate. If you’ve never heard of an MLP before, it’s not surprising. There are less than 100 publicly traded MLPs in the US. However, these little known business commodity produce some of the largest payouts available to everyday investors. MLPs are typically midstream energy companies. This means they don’t produce or own oil or natural gas. Instead, they mostly own the assets involved in bringing oil or natural gas to market- processing plants, fractionation plants, and pipelines. Or to put in another way, they own everything in the production chain…. except the actual oil or natural gas. Energy producers love them because they save the producers from having to invest the billions necessary to maintain these facilities themselves. Energy companies have to use their services to bring their products to market. So even if the price of oil or natural gas plunges, these companies will still would not be out of business
About the Author:
Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.
Article Source: ArticlesBase.com – Make Sure You Get Paid – Use Dividends
Question: How often to preferred stocks pay dividends? How does one find this information?
Answer: Try http://www.dividenddetective.com
They list just about anyone that pays a dividend…when…and how much.