Hey guys latest video on my YouTube channel now going over my dividend for the month of June let me know what you think
I guess my only feedback is that you placed some emphasis on stocks that had reduced dividends and how that wasn’t great (e.g.Imperial Brands) but bear in mind that you still own your share of Imperial Brands earnings, whether they distribute it or not. This is especially if you were going to reinvest anyway, by not paying the dividend you’ve basically just skipped the middle step of distribution + rebuying.
I guess the exception would be if a company has too much cash and is destroying value by not distributing it (via buybacks / dividends), but I don’t think that’s a big issue right now.
Interesting points mate thanks for the feedback
Hi. Thanks very useful. Can you perhaps make a video to explain Freetrade Dividend Income Calculations. Expecially US stocks. Received my first dividend of 0.01p, which I’m thrilled about. As a new investor, would find it helpful.
Hi @2912 not sure if this article will cover what you’re looking for -
Just to provide the counter argument against dividend investing -
Read quite a bit already. But maybe I missed something out. Thanks. Will get back to more reading.
What exactly do you want to know about freetrade dividend calculations? It’s like every other broker:
Gross dividend per share * number of shares * (1-tax rate)
I have 1.148 shares. Gross amount per share $0.04. Tax held $0.01. Net distribution $0.03. Forex rate 0.739. GBP rate per share $0.02. Total dividend £0.02.
I have 0.038 share. Gross amount per share $0.68. Tax held $0.01. Net distribution $0.02. Gross distribution $0.03. Forex rate 0.729. GBP rate per share £0.42. Total dividend £0.01.
I don’t have full shares at scenario 2. Is that why total dividend = £0.01?
Just use the above formula with the exchange rate.
If net distribution is 0.02$, we calculate 0.02*0.729= 0.0146. Rounding this gives you £0.01 as dividend.
Rounding gives you a penny more because the net dividend is higher.
Many thanks. Will remember for future. It’s pennies but my first dividends and I’m excited. Got confused and needed to understand. Thank you…