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Dividend Stock Investing Question

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Lex Vance

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I'm about to get into dividend stock investing. I'm going to give a simple example for my question.

A stock cost $20 a share and pays a 2% dividend that gets paid out quarterly. I buy one share for $20. Will I get 0.03 cents every 3 months or 0.09 cents every 3 months?

Thanks guys! With the market falling, now's the time to hop in while everything's on sale. So I'm gonna learn this stuff!
 

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MJ DeMarco

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I'm about to get into dividend stock investing. I'm going to give a simple example for my question.

A stock cost $20 a share and pays a 2% dividend that gets paid out quarterly. I buy one share for $20. Will I get 0.40 cents every 3 months or $1.20 every 3 months?

Thanks guys! With the market falling, now's the time to hop in while everything's on sale. So I'm gonna learn this stuff!
A 2% dividend paid quarterly on a $20 stock is 10 cents per quarter.

2% on $20 = 40 cents, quarterly is 10 cents. So your calculations are way off. $1.60 per year on a $20 stock is an 8% yield.

Also, the stock price will decrease by 10c on the x-dividend date, making the entire transaction seem like a wash.

now's the time to hop in while everything's on sale.
I'm not seeing a lot of stuff on sale unless it is oil related, and some retail. Some tech stocks are still trading at sky high valuations.
 
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Lex Vance

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A 2% dividend paid quarterly on a $20 stock is 10 cents per quarter.

2% on $20 = 40 cents, quarterly is 10 cents.

Also, the stock price will decrease by 10c on the x-dividend date, making the entire transaction seem like a wash.



I'm not seeing a lot of stuff on sale unless it is oil related, and some retail. Some tech stocks are still trading at sky high valuations.
Right on thank you MJ! That makes total sense. Now I get it. I was over complicating it. I'm gonna look into Southern Company and others for my basket.
I can't wait for Unscripted 2!
 
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ZeroTo100

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A 2% dividend paid quarterly on a $20 stock is 10 cents per quarter.

2% on $20 = 40 cents, quarterly is 10 cents. So your calculations are way off. $1.60 per year on a $20 stock is an 8% yield.

Also, the stock price will decrease by 10c on the x-dividend date, making the entire transaction seem like a wash.



I'm not seeing a lot of stuff on sale unless it is oil related, and some retail. Some tech stocks are still trading at sky high valuations.
Take a look at $newt

(not pumping btw - pays a nice div)
 
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Lex Vance

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Right on thank you MJ! That makes total sense. Now I get it. I was over complicating it. I'm gonna look into Southern Company and others for my basket.
I can't wait for Unscripted 2!
One more question if you don't mind. With all the easy investing apps like Robinhood and M1 finance, I'm a little leary due to their newness. Would you recommend a Charles Schwab type brokerage for safety because they've been at it for decades? Thanks again MJ! Not sure if you remember me. I'm the apartment maintenance man who built the training website after reading MFL.
 

MJ DeMarco

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Would you recommend a Charles Schwab type brokerage for safety because they've been at it for decades?
Yes, TDAmeritrade, Think or Swim is awesome, been using them for 2+ decades.

Robinhood and all these fin-tech places were proven to be unreliable in the last crash.

Thanks again MJ! Not sure if you remember me.
Sure do!
 
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Lex Vance

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Yes, TDAmeritrade, Think or Swim is awesome, been using them for 2+ decades.

Robinhood and all these fin-tech places were proven to be unreliable in the last crash.



Sure do!
Right on! TD Ameritrade it is. So, I'm slowly unscripting and I'm able to work only 3 days a week instead of 5. I can't freaking believe it! Next goal is to go full-time on MY dreams. I'm chunking it down. During this whole shut down ordeal, subscribers, views and revenue actually went up. However, I'll still be able to go part time once things settle back down. Sorry I'm not able to contribute more in here. It's just that I'm too nice and I have to answer everyone and read everything. I was spending hours in here reading and it cut into my hustle time. I'm still in the trenches grinding it out and had to cut myself off. lol Thank you MJ!
 
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DURABLEOILCOM

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Right on! TD Ameritrade it is. So, I'm slowly unscripting and I'm able to work only 3 days a week instead of 5. I can't freaking believe it! Next goal is to go full-time on MY dreams. I'm chunking it down. During this whole shut down ordeal, subscribers, views and revenue actually went up. However, I'll still be able to go part time once things settle back down. Sorry I'm not able to contribute more in here. It's just that I'm too nice and I have to answer everyone and read everything. I was spending hours in here reading and it cut into my hustle time. I'm still in the trenches grinding it out and had to cut myself off. lol Thank you MJ!
Which stocks did you end up investing in?
 

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