8Lun
What if no more dividends are paid out from now on? The dividend yield is always that of the last 12 months, not that of the future!
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22
•8Lun
@KevinC I think I have read that a dividend has been announced for the next quarter
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8Lun
@fz1006 That is quite possible. Let's assume fictitiously that you have invested €1,000. You still receive 2 distributions, each amounting to 10% of your purchase price over the next 6 months. However, the share price also receives a parallel discount on the ex-day. If it is then clear that there is little scope for further distributions after the two dividends, the share price may stay down. You will then have 20% (= €200) of your original investment in your account - minus the taxes due on it. However, if the outlook for MPC is not good, the share price will fall by at least the same amount and the portfolio value of your position may only be €600. Then you will still have made a loss.
You should assess whether the company is in a position to make good profits (and pay dividends) in the long term on the basis of a detailed share analysis. Otherwise the information is too superficial.
How else do you know whether the company won't file for bankruptcy tomorrow, for example because it has far too much debt?
You should assess whether the company is in a position to make good profits (and pay dividends) in the long term on the basis of a detailed share analysis. Otherwise the information is too superficial.
How else do you know whether the company won't file for bankruptcy tomorrow, for example because it has far too much debt?
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22
•8Lun
@KevinC Good point. Before I invest more, I will probably have to go deeper.
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8Lun
@fz1006 Sorry, but in my opinion you have not yet fully understood investing. Get more information in general. I'm not being offensive, I think we need to help each other here on the platform and set ourselves apart from other platforms like reddit or Instagram.
First and foremost, I would never use a high dividend yield as a reason to buy.
If you have any further questions, please feel free to ask. Many people can help you here. And ask before you invest money ;)
First and foremost, I would never use a high dividend yield as a reason to buy.
If you have any further questions, please feel free to ask. Many people can help you here. And ask before you invest money ;)
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11
•8Lun
@Joris I usually do my research beforehand. This was my first hasty purchase and I'll see what I get out of it. It's best to learn from mistakes.
A dividend yield of around 250% over the last two years still seemed to me to be a very good reason to buy, because after a certain time you have your invested money out again and everything after that is profit. Or have I fundamentally misunderstood the whole thing?
A dividend yield of around 250% over the last two years still seemed to me to be a very good reason to buy, because after a certain time you have your invested money out again and everything after that is profit. Or have I fundamentally misunderstood the whole thing?
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