How long do dividends last?

[Jrjohnny]

I was reading the great rat race escape , and MJ was talking about how much your escape number is and such, but what caught my eye is how he makes the dividends money, like do you invest $1 million, and yield X% back each month? Do dividends expire? And how is MJ so sure the company he invested in isnt just going to stop doing dividends? I know he only has 25% of his money there, but still! Thats 25% of his income! And im curious, what is everyones stock app? Whatever you call it.

 

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[Kak]

Because if they cut their dividend it would hurt their stock.

Most companies issue a dividend that is at the level that is in the best interest of all considered factors. Stock price, capitalization, growth ability, etc. They change policy on this slowly.

If they cut dividend, you can find a different dividend company.

 

[socaldude]

A stock price has a theoretical unlimited life span and unlimited price ceiling. A dividend occurs in perpetuity. This is all theoretical of course assuming the corporation continues to turn a net profit for its shareholders.

Dividend Discount Model (DDM) Formula, Variations, Examples, and Shortcomings

 

[ZCP]

Dividend Aristocrat: Definition, Criteria, Example, Pros and Cons

A dividend aristocrat is a company that not only pays a dividend consistently but continuously increases the size of its payouts to shareholders.

www.investopedia.com

hit Youtube and watch 30 minutes of 'dividend stocks' content.

you got this!!

 

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[Kevin88660]

I was reading the great rat race escape , and MJ was talking about how much your escape number is and such, but what caught my eye is how he makes the dividends money, like do you invest $1 million, and yield X% back each month? Do dividends expire? And how is MJ so sure the company he invested in isnt just going to stop doing dividends? I know he only has 25% of his money there, but still! Thats 25% of his income! And im curious, what is everyones stock app? Whatever you call it.

You pick companies that have stable cashflow and profits that has a history of paying dividends.

Reits, telco, utilities..

Don’t pick dividends just for the sake of dividends. A non-profitable company can just “pay dividend” to you as well but it is just moving money from left to right pocket. Eventually it will be unsustainable.

Unless if you have a lot of free time like MJ it is best to stick to dividend paying mutual funds that have the managers do the screening for you.