My First Dividend Payment for 2013

by Gily Tenorio on March 16, 2013

in Stocks

Investing in stocks that pay dividends is one of the best strategies you can do when choosing which one to buy. If you are newbie in stocks, you may not understand how dividend works.

Dividend is one way of the company to share the profit made by the business. Some companies may re-invest those profits by expanding the business or buying more properties and equipment.

On the other hand, established and big companies like PLDT and Globe use their profit in paying dividend to their stock holders at the same time, they have more money for expansion. It is also a company policy in order to attract more investors.

Investors want a sure income or profit from their investments, right? One sure income-generating tool is dividend so investors are looking for stocks that give consistent and high-paying dividend.

Globe Stock

 

Forms of Dividend

Dividend can be in the form of cash or shares of stock of the company itself. However, the normal form is cash that will be directly credited to your stock account. Normally, your stock broker will inform you through an email message about the payout. You can see an example on the image below.

In addition, you will also know when the payout will be because it is indicated in the information of the stock company. The company also informs PSE through a formal letter that they are giving dividend to their stock holder.

In the past, I have published several articles about dividend stocks. You could see below some of these posts. Read on to learn more about dividend.

Investing in Dividend Stocks

Why do Stocks Pay Dividends?

Two Ways to Earn from Stocks

10 Highest Dividend Yield Stocks in the Philippines for 2012

Go read those posts to learn more about what is dividend and how it works. Actually, it is always better to buy stocks that give dividends because you will be sure that you can earn a profit even the market is down. You know most of these companies pay dividends in regular period and in increasing amount each passing year.

 

My First Dividend for 2013

Last march 12, 2013, Globe Telecom paid dividend to their stock holders. The amount is P33.50 per share of Globe stocks (GLO). The profit I got is not really big, around P301 for 1o shares of GLO.

Imagine this. You own 100 shares or 1,000 shares of Globe stocks. How much dividend can you get? Use your calculator. Roughly, you can earn P 3,350 for 100 shares and P 33,500 for 1,000 shares excluding tax.

How about 10,000 or 100,000 shares? Wow, that’s really a good money! Globe pays dividend twice a year, one in March and another one in September. The total dividend plays around P60- P65 per year.

You can see below the snapshot details of the Globe dividend payment that I have received last Monday from my online stockbroker, CitisecOnline (COL Financial Group).

Dividend

 

Final Notes

Dividend is one way on how to earn from stock investing. It is better to focus on stocks that pay dividend and companies with strong financial foundation. If you are looking on which passive income to venture out, dividend stocks is one of the best choices to go.

Make sure that the company you’re investing is a strong company in terms of brand and management. In this way, you will minimize the risk of losing money since the company cannot close the business easily.

 

About the Author:

GilGil Tenorio is a blogger, a husband, a father, and an active Christian. He likes playing guitar, C.S. Lewis, Plants and Zombies and NBA. Follow him at Facebook, Google+, YouTube and Twitter. Thanks!

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{ 4 comments… read them below or add one }

precy April 10, 2013 at 05:31

Is it mandatory for all companies to pay dividends to its stockholders?

Reply

Gily Tenorio April 13, 2013 at 00:36

Precy,

It is not mandatory for all companies to pay dividends, it all depends on the company policy and management if they want to pay dividends or not. Some companies do not pay dividends, instead they invest the profit in buying more properties, equipment or assets.

Reply

Edgar March 17, 2013 at 12:58

Hi Gil, Im OFW also, just reading your blog and found out that perhaps I can invest if I got some enough fund.

Gaano katagal ung 10 shares mo bago mo na received itong P301.50 na dividend.

At magkano na ba ang stock per share ng Globe.

Thanks.

Reply

Gil March 20, 2013 at 03:14

Hi Edgar,

I bought Globe only in February so almost less than a month. I bought it before the Ex-Dividend date or before February 14, 2013 and hold it until now.

Reply

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