how to buy dividend paying investments
investors seeking dividend investments have several options including stocks mutual funds and exchange traded funds etfs the dividend discount model or the gordon growth model can help investors choose individual stocks these techniques rely on anticipated future dividend streams to value shares to compare multiple stocks based on their dividend payment performance investors can use the dividend yield factor which measures the dividend in terms of a percentage of the current market price of the company s share the dividend rate can be quoted in terms of the dollar amount each share receives as dividends per share dps in addition to dividend yield another important performance measure to assess the returns generated from a particular investment is the total return factor this figure accounts for interest dividends and increases in share price among other capital gains tax is another important consideration when investing in dividend gains investors in high tax brackets often prefer dividend paying stocks if their jurisdiction allows zero or comparatively lower tax on dividends for example greece and slovakia have a lower tax on dividend income for shareholders while dividend gains are tax exempt in hong kong 1314