"Corporations may pay part of their earnings as dividends to you and other shareholders as a return on your investment. These dividends, which are often declared quarterly, are usually in the form of cash, but may be paid as additional shares or scrip.
You may be able to reinvest cash dividends automatically to buy additional shares if the corporation offers a dividend reinvestment program (DRIP).
Dividends are taxable unless you own the investment through a tax-deferred account, such as an employer sponsored retirement plan or individual retirement account. That applies whether you reinvest them or not."
--
TheStreet.com Glossary
Related terms:
Divided yield
Dividend payout ratio
How much do you know about investing in dividend stocks?
Get up to speed on the latest dividend plays with the following insights from
TheStreet.com.
From
Dividend.com: TJX Slims Down
We had removed shares of
TJX (TJX Quote - Cramer on TJX - Stock Picks) from our "Recommended" list on Sept. 17, when the stock was trading at $34.22. The company has a 1.86% dividend yield, based on last night's [Nov. 10] closing stock price of $23.70. We are cautious on the retail sector and especially the clothing-related names here. There are some other companies that we are watching that may be better plays as prices come down. We'll keep investors posted on which they may be as we get more retail earnings reports later this week.
TJX is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
Read the full version of
Dividend.com: TJX Slims Down, which includes takes on
CB Richard Ellis (CBG Quote - Cramer on CBG - Stock Picks),
General Growth Properties (CGP Quote - Cramer on CGP - Stock Picks) and
Vodafone (VOD Quote - Cramer on VOD - Stock Picks).
Get Your Coffee and a Dividend (Video, Nov. 11)
David Peltier, portfolio manager of the
Dividend Stock Advisor, says companies like
Starbucks (SBUX Quote - Cramer on SBUX - Stock Picks) are out but other fast-food coffee chains have the right price and the right dividend, such as
McDonald's (MCD Quote - Cramer on MCD - Stock Picks).
To watch the video, click the player below:
Plus, don't miss
Carnival-Proof Your Portfolio (Video, Nov. 3: Peltier dissects
Carnival's (CCL Quote - Cramer on CCL - Stock Picks) recent dividend cut and explains how to know if your favorite stocks are safe.)
Watch the video on TheStreet.com TV.
From
Dividend.com: Cardinal Healthy:
Comcast (CAH Quote - Cramer on CAH - Stock Picks) reported a 38% increase in third-quarter earnings on a drop in capital spending and better cable pricing.
The company expects to exceed its
free cash flow growth forecast of at least 20% in fiscal 2008. It reported operating cash flow of $3.24 billion, up 10%, while free cash flow rose by 77% to $928 million. Capital spending fell 14% to $1.3 billion.
The company was able to add 382,000 new Internet subscribers in the quarter, but that was down 19% from a year ago. Comcast ended the quarter with 14.7 million broadband customers.
The company said it may not complete its share buybacks for the fourth quarter and for next year as originally planned.
We have avoided shares of CMCSA since our early June coverage began, when the stock was trading at $21.94. The company has a low dividend yield of 1.47%, based on last night's closing stock price of $16.96. We think the stock would be attractive if the company raised its dividend to a more respectable level. For now, we don't see much excitement in owning the shares, as the company is trading at nearly 19
times the low end of 2009
EPS estimates.
Comcast is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
Read the full version of
Dividend.com: Cardinal Healthy.
From
Cramer's 'Stop Trading!': Viva Verizon:
"When you get a yield that is 6.5% to 7%," [Jim Cramer] said, "
Verizon (VZ Quote - Cramer on VZ - Stock Picks) suddenly becomes a
bond with upside."
Read the full version of
Cramer's 'Stop Trading!': Viva Verizon.
Plus, don't miss these dividend-focused videos on
TheStreet.com TV:
Top Dividend Stock to Buy Now (Oct. 25: David Peltier, portfolio manager of the
Dividend Stock Advisor Newsletter, argues the importance of dividends and why one drug stock is a safe and attractive bet.),
Cramer: Where to Make Money Now (Oct. 15: It's all about the dividend-payers, says Cramer.),
Old Investing Strategy Is in Again (Oct. 14:
RealMoney contributor, Dan Dicker, says to return to the market plan of the 1950s and 1960s. Look for dividend producers, not growth stocks, to make money.) and
Cramer: Shop for Yields (Oct. 12: Cramer expects lower levels in the market and says to consider yield if investors are buying.)
TSC Staff
RSS
