What are dividends?

Dividends are a portion of profits that a company distributes to shareholders. Dividends are paid along with any earnings from the value of the company's stock; considered as a “reward” to shareholders for holding shares.

Companies in certain sectors have a reputation for paying dividends. This is also more common in established companies; because they don't need to reinvest all of their profits back into the business. Companies can pay special dividends in a lump sum; or pay in installments, like every quarter or year.

Regular dividend payments are a big advantage of popular stocks; though common stock can do the same thing. But unlike bond interest payments; Dividend payment is not guaranteed. Companies can cut or even stop paying dividends when going through tough economic times.

What is the dividend rate?

The dividend rate (yield) is the percentage that a company pays annually in dividends for every dollar you invest. For example, a certain company has a dividend yield of 7%; and you hold their $10,000 worth of stock. Thus, each year you will receive a payout of 700 USD; equivalent to $175 per quarter.

It should be noted that companies pay dividends based on the number of shares held by investors; rather than the value of the shares. So the dividend payout ratio fluctuates according to the current share price. There are many stock research tools that list recent dividend rates; but you can also calculate it yourself.

Formula to calculate dividend rate

It is not uncommon for a stock's dividend rate to be not listed as a percentage; or sometimes investors want to calculate by themselves to get the latest data. In that case, use the dividend rate formula. You simply divide the annual dividend paid per share on that per share price.

Dividend rate = Annual dividend paid per share / Price per share

Example: A company pays $5 in dividends per share; and their current share price is $150. Thus, the dividend rate will be 3.33%.

Bull Market - What is a Bull Market?

A bull market, also known as a bull market, is an extended period in the market. When the prices of securities are trending up, there are no exact statistics or metrics that can clearly describe whether we are in a bull market. However, there is a widely accepted principle, which is that the stock price is up at least 20% from the most recent bottom; along with signs that the stock will continue to rise.

The term is often applied to the stock market. They are measured by major indexes: the S&P 500, Nasdaq and the Dow Jones Industrial Average. But bull markets can happen in any asset that can be bought or sold; from individual stocks to other assets such as real estate, bonds and currencies.

Difference between Bull Market and Bear Market

A bull market is the opposite of a bear market that occurs when stock prices fall.

This understanding can help you distinguish: when agitated, the bull will be aggressive, rushing to attack at lightning speed. Thus, this animal became a symbol of a rapidly rising stock market.

In contrast, defensive bears are known for their hibernation habits. Thus, a bear market is the perfect metaphor for a declining or sluggish stock market.

While not always simultaneous, bull markets often reflect a period of “up” in the overall economy; especially the growth phase in a business cycle.

What is Price Target?

A price target is a forecast by financial analysts or advisors about the future value of a certain financial product, including securities, stocks, bonds, futures contracts, commodities, ETFs and other complex investment products.

There is no way to know for sure what value a stock will trade in the future. A price target is just a calculated guess. When an analyst raises a price target for a stock, they typically expect the stock price to rise. Conversely, lowering the price target could mean that the analyst predicts the stock price will fall.

For individual traders, who may develop their own price targets for the asset they are trading, a price target is the position they look to exit when their initial expected price transaction has been accepted.

Price targets are an organic factor in financial analysis; This value may change over time as new information becomes available. Analysts often publish their price targets in research reports on specific companies, along with recommendations on whether to buy, sell, or hold that company's stock. Stock price targets are often quoted in the financial news media.

Fractional Shares - What are Fractional Shares?

There's a new way to buy stocks that makes it possible to almost ignore the stock price.

Brokers like Charles Schwab Corp. and Robinhood offered something called fractional shares, allowing people to invest as little as $1 to even 1 cent in a company.

This innovative product makes the concept of ownership completely different. Instead of buying a fixed part of a company for a certain price, you can invest a specific amount and own a part of the company. You get all the benefits in proportion, if the stock price goes up and of course you have to accept the risk of loss if the stock price goes down.

Typical examples of odd stocks

Can't afford a stock of Amazon stock, currently trading at $3,125 on October 2nd? Why not invest 100 USD? A 5% increase in the share price to $3,281 will give you a share of the stock to a value of $105. Or you can have a small slice of Alphabet Inc., the parent company of Google, because it costs about $1,450 per share.

What is Ichimoku Kinko Hyo?

Ichimoku Kinko Hyo or Ichimoku for short is not an indicator. It is a trading system built on candlestick charts to improve the accuracy of forecasts on price movements.

Ichimoku was developed in 1926 by inventor and financial researcher Goichi Hosoda.

What Is Alligator Indicator?

Alligator is one of the indicators in the technical analysis indicator set of Bill Williams. This tool indicates which period the market behavior is in or the beginning and the end of a period. This made Bill Williams think of the crocodile's hunting process and invented the Alligator indicator.

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