Learning about shares: Windfalls that flutter

Thursday 20 May 2004

Q. Barbara asks: Can you explain what the dividend columns in the newspaper sharemarket table mean? Are there any underlying messages hidden in dividends?

By The Landlord

A. Dan Dividend responds: That's an interesting question - there's more to dividends than meets the eye. Like you, Barbara, if readers started buying shares in the summer when we began this column, they might have already received a dividend - depending on which companies they chose to invest in.

A dividend is often a nice little windfall that arrives in your mailbox or bank account. If you invest in dividend-paying companies, they're an important part of the total returns you get from your shares.

So what exactly is a dividend?

A dividend is a payment a company makes to its shareholders. It's usually paid from profits, but can also be paid for other reasons, such as when a company has extra cash over and above that needed to finance growth or expansion.

Read More - Opens in a new window
Commenting is closed

Property News

Auckland sees highest sales since 2015

The SuperCity turned in its strongest housing sales performance in a July for five years last month, new data from Auckland’s biggest real estate agency reveals.


Augusta Capital takeover bid now unconditional

ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.


ANZ eases servicing test

ANZ has become the latest bank to ease its servicing test criteria for borrowers, reflecting the lower interest rate environment.

Site by PHP Developer