Dividend Paying Stocks that's more!
Dividend paying stocks (DPS) of growth companies and emerging market projects help you maximize profits and build net-worth fastest.
DPS are simply stock investments that pay dividends (profit distribution) during the year to shareholders. These stock dividend distributions are portions of the profits of the company that were allocated by the board of directors for distribution instead of reinvesting them back into the company to help the company grow. The profit distributions may be done quarterly or at any time during the year at the option of the board of directors. The effective rate of the distributions is looked at yearly known as the annual yield of the dividend. The Board may also choose not to offer dividends in order to reinvest it into the company. The latter is the case usually only when the company is in a high growth stage and all the dollars are needed for growth. When a company’s growth slows down and reinvesting the potential profits back into the company will not result in much growth, distribution of profits as dividends to investors will be the prudent option. Once distributions commence, it would need to continue in order to please investor shareholders and not cause suspicion of problems with the company faltering. Distributions consequently are perceived to be a sign that a company is doing well and sustainable even though that may not always be the case. There is as you can expect a rush to find and purchase the best dividend paying stocks
Companies that pay stock dividends tend to perform a little better than its counterpart growth stocks simply because management is extremely aggressive to generate profits that will need a portion to be distributed. One can expect the annual yields to be in the 3% plus or minus range. All in all, it is better to receive distributions and the opportunity for stock appreciation and capital gain as these are two monetizing opportunities that are better than one.
Increase in corporate taxes by government may impact a company’s bottom line forcing it to eliminate, postpone or alter the payment schedule of dividends. Some companies actually increase dividend payments the year before tax increases go into effect in order to balance out the effect and still accommodate investors.
It is important to understand a conflict of interest of commissions that will exist with your stock purchase experience. Stock brokers and money managers are often paid by commissions on stock purchase and so their interest often lies in as many trades they can make and steer the investor into fortheir maximized commission. The surge in the drive for commissions can also affect the net earnings of your investment. In many cases, investors have to evaluate whether it is worth risking a large investment in dividend stocks for a 3% distribution.
The ideal situation is to find dividend stocks that are invested directly into an unlisted growth company or project in an emerging market that will eventually exit as a listed company. Better still, is the company investing in appreciating real property where investments are secured by property? More security for your investment is established by the combination of recoverable appreciating property and the boom effect of an emerging market. Thirdly are the market cycles of the industry well understood and being monitored?
So where is it best to find stocks that distribute some of the profits as dividends all secured to real estate in emerging markets that are booming and highly profitable? Emerging markets can be found locally anywhere the local market is experiencing good population influx and job growth. You however need an adept professional team to secure the ideal one for assistance, contact our adept team. To enjoy the best advantages of all, offshore emerging market investments into dividend paying stocks secured will work well. Some of the economic drivers for the offshore invested company or project include a sustainable large market in high demand, tax holidays and multiple incentives/concessions even allocated land and 100% repatriation of invested funds and profits from the host country. What about the advantages of low cost of labor and the higher than normal end user sales price because of limited supply and high demand? The best way to enter this world of secured and profitable opportunities is to work with an adept team that will facilitate the process for you and help get you there. You can enjoy more security and more profits in offshore dividend paying stocks with our quickly please contact our adept team today.
How to Invest Secured > Best Investments > Dividend Paying Stocks
