29. Money For Nothing | Dividends

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There are two main ways to make money with stocks. The first is from the capital growth, that is selling it higher than you bought it for and making a profit.

The second way is through taking a share of the company’s profit. As an investor you are a part owner of the company, so when they make a profit, some companies decide to share that profit among all their investors, and this is paid in what is known as a dividend.

Who doesn’t like free money?! Dividends are a great form of income for investors and something you should consider next time you’re looking to invest.

In this episode you will learn:

  • What a dividend is
  • How you can make money from dividends
  • What a dividend yield is
  • Which companies pay dividends and which don’t
  • Which companies are paying the highest dividend in Australia
  • What franking credits are and how they impact your tax return


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