Not exact matches
Returns are calculated after taxes on distributions, including capital gains and
dividends, assuming the highest federal tax rate for each type of distribution
in effect at the time of the distribution Past performance is no guarantee of
future results.
At the moment, the Fundrise Income eREIT is
returning 10.5 %
in dividends (though of course, past performance is not an indicator of
future returns).
For example,
in an ideal world, a stock that earns E, pays a proportion d of that out
in dividends, reinvests the rest to grow at a perfectly constant rate g, and is expected to stay
in business into the indefinite
future, should have a P / E ratio of d / (k - g) where k is the desired long term rate of
return (say 0.10 or 10 %) that the stock should be priced to deliver.
The money made by way of
dividends attracts
dividends in the
future, and there is a rollover effect that compounds the
return.
Dividend stocks are simply not the bargains they used to be, so it's wise to expect more moderate
returns from them
in the
future.
Assuming that the current
dividend payout ratios and earnings growth rates stay approximately constant
in the
future, the ETF should
return about 11 % per year
in total.
A company that pays higher
dividends may
return lower capital gains
in the
future.
I have a lot of interest
in that right now and I'm slowly getting results but there's a learning curve... I'm also very anxious to buy
dividend growth stocks which should happen
in a near
future if I can receive both my bonus qnd tax
return.
Apple has $ 30 billion
in cash
in the United States it could
return to shareholders right now, but it will instead defer to a later point
in time despite the fact that
dividend taxes could be headed higher
in the
future.
To explore this argument, the authors add three control variables, which are recognized
in the finance literature as having possible predictive power on
future asset
returns:
dividend yield, term spread, and real short - term rate.
Equity risk premium bears argue that so much of these past stock
returns have been driven by increases
in earnings and
dividend multiples, it would be nearly impossible for a further expansion
in these to contribute to
future returns.
According to Modern Portfolio Theory, asset allocation is the primary determinant of
future returns and
in the reduction of Read more about Sell your Bonds and Gold and Buy
Dividend Growth Stocks Before it is Too Late -LSB-...]
So, a company that does not pay out a
dividend or pays a lower
dividend may provide more of its
return to an investor
in the form of
future capital gains, stock price increases or
dividends.
Currently, assuming
dividend growth speeds up to a 6 % rate and that the
dividend yield is still just 1.4 %
in the
future, the long term total
return on stocks will be 7.4 %.
In the graph above I tried to highlight the eras for different alignments of
dividend yields and
future five - year
returns.
Ultimately companies are valued based on a wide array of metrics
in addition to their book (or liquidation value) and
dividend stream; profit,
return on assets,
return on equity, growth rates,
future prospects etc..
Current
dividends alone deliver a 10 + %
return on their original investment cost, even if they don't increase
in the
future.
Returns are calculated after taxes on distributions, including capital gains and
dividends, assuming the highest federal tax rate for each type of distribution
in effect at the time of the distribution Past performance is no guarantee of
future results.
In the end, the result will depend on the
future market
returns — but I wouldn't expect there to be a significant difference between either running a DRIP or not running one over the long term (as long as you occasionally invest the cash
dividends manually).
I've publicly acknowledged my investing activities
in Canadian preferred shares as a method of diversifying my Canadian
dividend portfolio (DivG) for risk,
future returns and cashflow.
I know that we may not get similar
return in the
future, but I am so confident that we can get a solid passive growing
dividend income from my investment.
A company that has solid
dividends, and
dividend growth, is a company that displays confidence
in the
future and is willing to share current earnings
returns with investors.
The ability to earn a high
return on capital means that the earnings which are not paid out as
dividends, but rather retained
in the business, are likely to be reinvested at a high rate of
return to provide for good
future earnings and equity growth with low capital requirement.
It is a question with no right or wrong answer because a number of variables (interest rates applicable till the mortgage is paid down, annual
returns from a diversified portfolio during the same period,
future tax rates on income, interest,
dividends and capital gains, the annual churn
in a portfolio etc.) are unknown at this point.
It's right up there
in the prospectus for the SGQI exchange traded note, which implies to me they believe institutional investors will make the link between
returns coming from
dividends and
future outperformance of income stocks, which is totally spurious.
If you want to estimate your
future return, it has to be determined by the actual values (which we hope is
in the plus zone), not the policy's stated
dividend rate!
in terms of
return, ICO is just a promise of increased value
in future via tokens, while IPOs offer
dividends to their shareholders.