Let's say you own 100 shares of a $50 stock with a $1 per share yearly dividend. This means a 2% dividend yield. The value of this holding is $5,000 (100 shares x $50). With a 2% dividend yield, you can expect to get $100 per year in payments (2% of $5,000 = $100).
with this explantion it makes me believe i would have to wait 50 years to make back the 5000 dollar without any profit to invest again, why would anyone invest in dividends? what am i missing?
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