What are dividends and who can receive them

What are dividends and who can receive them

Investing allows you to get a stable passive income, to ensure financial stability. You can invest even small amounts, but with a competent investment in this way, you can not just "extinguish" inflation, but also to make good money. After all, the most reliable way to work competently with capital is to take the whole process under strict personal control..

Passively, you can earn in several ways. You can invest in real estate and earn on its rental, you can open a deposit in foreign currency, or you can buy shares and receive dividends, completely transferring the work with assets to the network format.

Work with physical assets (Real estate, Gold, even antiques) Easier, because there is no need to have network and computer literacy. But the future of investment and earnings in general is information technology. Now in a smartphone you can buy securities of any world company and earn on these assets. To do this, you only need to contact a broker (including network), for him to open an account, and get started right away.

Receiving dividends is one of the ways to earn money with the help of securities. Dividends are a share of profits, which companies pay to holders of their shares (which are sometimes referred to as third-party shareholders).

Respectively, to start receiving dividends, it is necessary to purchase shares of that company, who pay dividends (because not all companies provide such an opportunity to their holders of securities).

The process of buying shares usually consists of several stages:

  1. After that, how to officially open a brokerage account through a broker, in a licensed bank or specialized management company, it becomes available for work. The account can be replenished by requisites in any convenient way online or off-line (through the bank's cash desk, ATM, mobile application or personal account).
  2. The funds deposited into the account can be disposed of at your discretion, buying various securities for them (stock, Bonds, futures or options), as well as currency. You can invest in funds, by purchasing their shares. To receive dividends, you should buy shares of those companies, whose policy includes regular registration of dividend payments.

Dividends are paid either in a fixed amount (its size is set at the discretion of the founders and the board of directors of the company), or as a percentage of the company's annual income or the value of the share at the time of its purchase. The frequency of payments is also determined by the company's policy and can be in the range from once in six months to once in five years.. The optimal period is once every one to two years (not too often and not too infrequently). Accrual of dividends is automatic to all holders of securities - the funds are transferred to the brokerage account, there is no need to make special applications for this, which is very convenient.

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