Comments on: I Got My First Dividend – How Do They Work? http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 22:03:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: rodgerlvu http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/comment-page-1/#comment-663018 rodgerlvu Fri, 15 May 2009 06:08:14 +0000 http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/#comment-663018 thanks. it's a good post.. thanks. it’s a good post..

]]> By: Jim Lippard http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/comment-page-1/#comment-2212 Jim Lippard Sun, 31 Dec 2006 21:56:16 +0000 http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/#comment-2212 The frequency of dividends on mutual funds can be determined by the type of fund--e.g., growth funds will typically not issue dividends very frequently (in part because growth companies are usually reinvesting earnings on growth rather than distributing them to shareholders), while income funds are intended to provide dividends as a source of income, and generally do so monthly. There are also tax-exempt funds that attempt to generate regular non-taxable income (apart from inevitable capital gains distributions); these are typically based on municipal bonds. The frequency of dividends on mutual funds can be determined by the type of fund–e.g., growth funds will typically not issue dividends very frequently (in part because growth companies are usually reinvesting earnings on growth rather than distributing them to shareholders), while income funds are intended to provide dividends as a source of income, and generally do so monthly.

There are also tax-exempt funds that attempt to generate regular non-taxable income (apart from inevitable capital gains distributions); these are typically based on municipal bonds.

]]> By: Bill http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/comment-page-1/#comment-2208 Bill Sun, 31 Dec 2006 20:30:00 +0000 http://www.thesimpledollar.com/2006/12/31/i-got-my-first-dividend-how-do-they-work/#comment-2208 Great point... I'm actually looking at some DRiPs that are for companies that pay high dividends, allowing me to get a "free" couple of shares of stock each quarter. My plan is to save some of my money (along with portions to a savings account for my emergency fund, and to paying down my mortgage, my other "safe" way to save). At some point I'll have enough invested to split it up between stocks that pay good dividends (hopefully it will behave like an accelerated savings) and a "discretionary" stock portfolio looking for growth stocks. Great point… I’m actually looking at some DRiPs that are for companies that pay high dividends, allowing me to get a “free” couple of shares of stock each quarter. My plan is to save some of my money (along with portions to a savings account for my emergency fund, and to paying down my mortgage, my other “safe” way to save).

At some point I’ll have enough invested to split it up between stocks that pay good dividends (hopefully it will behave like an accelerated savings) and a “discretionary” stock portfolio looking for growth stocks.

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