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Finance for managers Discussion 7

Finance for managers Discussion 7

Q Buying stock is most often associated with a rise in the price of the shares (buy low…sell high)…however, there is the matter of a dividend that some firms payout to shareholders. So, do you consider the dividend in/with your selection of stocks? Are there mutual funds that ‘cater to’/emphasize dividend paying stocks? Also, ‘where’ does the dividend originate from, and, ‘who’ decides if a dividend is/will be forthcoming.

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Several people show their interest to make the investment in stocks that pay a dividend so that the benefit of the steady payment can be taken. Opportunity is also received for dividend reinvestment to buy stock shares in addition. Since several stocks that pay dividend present organizations which are regarded to be mature and stable in a financial manner, prices of stock of such organizations can increase in a steady manner over time whilst periodic