While looking for a company to invest in for my project, I stumbled upon a problem. I was trying to find a dividend rate of 7% or more, but every time I hopped on to a financial website, the dividend rate was represented by an amount, in dollars. But the only thing represented by a percentage was the "dividend yield". So I looked up the difference on Google and found this website: http://smallbusiness.chron.com/difference-between-dividend-rate-dividend-yield-56992.html.
The rate is how much the company will repay you per share. The yield is the percentage of the money invested that the company will repay you.
Hello Accelerated Math Students! As part of your Quarter 2 investment project, you will post on this blog using your holiday pseudonym. You will also comment on two other posts. EXTENDED DUE DATE: SUNDAY DECEMBER 11, 2016. The grades are now finished for the blog.
Wow!That website must've helped you a lot on this project.
ReplyDeletewhat did you mean by "per share?"
ReplyDeleteThank you for your comment, Blizzard. While I was working on my project, I also stumbled on this problem. I went onto the website, http://www.gurufocus.com/, as suggested by my friend, Anh Lien, which really helped me a lot. When I searched the company I was investing on,I also clicked on the dividend yield. This really confused me as the dividend yield was always lower than 5%. I was really stumped until my friend told me to just search "'my company's name' rate of return". After that, everything was a breeze. I later found out that the difference between a dividend yield and the rate of return was that the dividend yield was the percentage of the current share price and that the rate of return was the one we were supposed to look for; the gain or loss of an investment represented as a percentage of the investment's cost.
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