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Showing posts from January, 2016

Share Investment Had Two Types Of Incomes

Share investment had two types of incomes: ·          Capital appreciation ·          Dividend income Every investor has their own method of investing that suits them the most. For youngsters, normally they are more to risk seeker while for elder person they are more to risk adverse. High dividend yields are attractive to investors who desire current income and stability with lower risk. This yield is then reinvested. This process of reinvesting repeats itself for as long as you own the stocks. As the interest on your investment is compounded, it will greatly increase your return over the time. Dividends are money in your pocket, and after they’re paid they can’t be taken from you. The share price movement of a company is mainly affected by market sentiment and the company earnings. However, dividends are mainly affected by company earnings itself only. No matter how bad the market condition is, as long as the company is still making good profit, they will still decla