The yield is simply the amount the company pays each year, divided by its share price. While dividends are great, the level of dividends different companies pay is vastly different. The dividend yields companies pay vary over time and market conditions.

So a company paying a big dividend yield might be returning more money to shareholders than it profits in a year. That can only last so long.

How Do Dividends on Stocks Work? | eHow

So while companies paying large dividends might be attractive, you need to be able to assess how sustainable those dividends will be over time. Click the link to get details about the key dates when it comes to dividends. Take a look at our day trial offer to the newsletter here.

What are Dividend Stocks? - irudivupic.web.fc2.com

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Answers Podcast Customer Service. Home General Investing What are dividends and how do they work? What are action forex newsletter and how do how dividend paying stocks work work?

Introduction to Dividends and Dividend Investing

Not a bad deal! What kind of dividends should you expect?

Unfortunately, dividend payouts are much more complicated. Yet, the problem with high-payout stocks is that their dividends are often unsustainable. And generally, when companies cut their dividend, the market does not greet the news positively… So while companies paying large dividends might be attractive, you need to be able to assess how sustainable those dividends will be over time.

Other dividend considerations There are a couple of things that you, the investor, need to be aware of concerning dividends. Dividends are generally paid quarterly.

There are exceptions like annual dividends and one-time special dividends. Yet, for the most part, companies try setting a rate that pays you once every quarter.