It is worth remembering that dividends can be a very mis-leading incentive Although it can be a great way to invest it may not be the best.
A good example is the life insurance adverts that give you a free voucher on signing, yes that’s nice to spend but a cheaper policy would have been better in the long run
I read somewhere in the forums before, that a person who chased the dividends and thought he was up lots was in reality paying many fees or % to move shares for dividends and they went down in price after divi payments as people mentioned above.
In short he would have made more money in a long term stock with no dividend or even one with a dividend and sticking with it
Also, with commission-free trades and fractional shares, you can essentially make your own dividend stocks by just investing in the best companies and selling a fraction periodically.
The dividend, which you’ll receive in about a month, will compensate you for the share price drop, or the other way around. The stock price will continue to wander up and down from here…
The price is irrelevant, the dividend is not based on it but on profits/cashflow/liquid assets/previous dividends that the board deems a good share for investors.
Yes, it’s not at all like an interest payment on a bond or bank account. The dividend is set by the company in dollars or pence.
Information providers will divide that figure by the share price to get a percentage for easy comparison purposes, but as you’ve worked out, the share price varies continuously, so the percentage can vary as well, and any percentage dividend you might see quoted is just calculated at an arbitrary moment in time.
You will receive an app notice (you’ve received investment income! or similar) plus an email to advise that you have received one, it will also show in the activity (the date will show as the actual dividend pay date).
Although it can be a great way to invest it may not be the best.
