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HOW DO DIVIDENDS WORK?This will be a brief, simple, bare-bones explanation of the dividend process.
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1. Your purchase shares of a company.
2. At the end of the quarter, the company analyzes its performance.
3. The Board of Directors declares whether or not they’ll be paying a dividend.
4. The company announces how much the dividend will be, the ex-div date, and the pay date.
2. At the end of the quarter, the company analyzes its performance.
3. The Board of Directors declares whether or not they’ll be paying a dividend.
4. The company announces how much the dividend will be, the ex-div date, and the pay date.
5. You receive your dividend on the pay date!
6. This step is up to you. You can DRIP that bad boy right back into the company, take it as income and spend it, or hold it while analyzing other investment opportunities.
6. This step is up to you. You can DRIP that bad boy right back into the company, take it as income and spend it, or hold it while analyzing other investment opportunities.
The more times you go through this process, the more your passive income will grow!
If you ever have any questions about this, please DM. I’d love to chat!
If you ever have any questions about this, please DM. I’d love to chat!
