Sunday, December 11, 2016

Investing and Interest

        I have learned much from this Investment Project about investing your money. One of the biggest things that my project had taught me was that if you want to invest never invest in banks, as in my project I had chosen Chase Bank which had given a dividend of 0.06% at the time that I checked to see what it was and within the 10 years and annual saving of $2,500 dollars, I only gained about $67 dollars from Chase Bank. While on the other hand if I had taken the money and invested it into the company I choose which was the ProAssurance Corporation which offered a dividend rate of 31.8% at the time that I had checked on their dividend rate and had found that I made a roughly 80,000 more dollars if I were to have taken those 10 years of annual savings of $2,500 dollars and invested it into the ProAssurance Corporation and another important thing that I learned was that you shouldn't invest in a company just because they have a high dividend percentage as that is a very risky move due to how it is probable for that dividend percentage to decrease and cause you to lose money. This was the case for the company I had invested in as when I went to check on the dividend percentage it had decreased by 1 percent already and if I had chosen another company which had a smaller dividend percentage it would most likely have a lower chance for the dividend percentage to decrease and a higher chance for the dividend percentage to increase and for you to make more money. What do you guys think? Should people invest in high risk companies with big dividend percentages, or play it safe and invest in companies with smaller dividend percentages?

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