TRADING FACT#5
WHAT IS DIVIDEND YIELD?
Dividend yield is one type of profit provided by the company. When a company gets some more profit and expect happiness due to its shareholder, the company decided to give some money to its shareholder as share. this is called dividend yield.
ARE ALL COMPANY GIVES DIVIDEND YIELD?
Not necessary. some companies don’t gives dividend just to invest in other company and make more money. Its completely on the company whether it gives yield or not.
IS THE DIVIDEND GOT TO THE SHARE HOLDER AT SOME SYMMETRIC TIME INTERVAL?
NO. When a company got a great profit and can’t decide to invest in other company to increase the profit, it decided to share those profit into its share holders and give them as share. this is called dividend yield. it is not necessary that company would give the dividend at a symmetric period interval. because dividend is totally depend upon the profit of that company.
“COMPANIES with less competition”, “companies independent of brand or marketing their brands” are found issuing dividend to their share holders.
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thank you for your response