DIVIDENDS RANKING

Why invest on dividends




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Is it important the amount the dividend increase yearly?

Think of a share of 10€ that pays an annual dividend of 4,0%, 0,40€. Imagin that you invest there 10.000€, so you buy 1.000 shares. If the dividend and the price increse yearly a 6%, the result after up to 20 years will be:

Year Price Investment Dividend
Amount %
0 10,00 10.000,00 0,40 4,0%
1 10,60 10.600,00 0,42 4,0%
2 11,24 11.236,00 0,45 4,0%
3 11,91 11.910,16 0,48 4,0%
4 12,62 12.624,77 0,50 4,0%
5 13,38 13.382,26 0,54 4,0%
7 15,04 15.036,30 0,60 4,0%
10 17,91 17.908,48 0,72 4,0%
15 23,97 23.965,58 0,96 4,0%
20 32,07 32.071,35 1,28 4,0%

An increasing dividend policy is important because:


 

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