My First Dividend in My Entire Life

Posted by Grace under Investing on August 1, 2014

How did you received your first dividend? What do you feel if you will receive stock dividends today? Have you received a dividend anywhere else? I heard some of my friends are receiving dividends in the company where they pay an insurance, maybe they are talking about some “benefits” or the “cash value” in the life insurance they are paying. I am happy I am receiving some dividends in some companies in the Philippines, I invest in stocks, that’s why I received stock dividends.

But what is stock dividends? How to received that or how to make sure you are getting paid with the dividends. Companies sell stocks shares in public to expand their business, they raise money via selling stock shares especially when they are sure their company will be good in doing business.

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Why they pay dividends to the stockholder? Let’s just say, it’s a “bonus”, when the company earn profits, then they will have “profit distribution”. Some companies pay cash dividends or percentage stock shares.

See Also: What is Ex-Dividend?

You will easily know the date when you will going to receive a dividend, the stockbroker will be making an announcement for the dividend payment schedule. Assuming you have a total of 10,000 ABC stocks, when ABC stocks pay dividends, you will be notified by your stock broker, when will you get paid? Read some information about stock dividends;

Declaration Date, Ex Dividend Date, Record Date 
and Payment Date

  • Dividend Declaration Date: ABC Company will make an announcement regarding the issuance of dividends. They will inform the stockholder about the ex-date, record date and payment date.
  • Ex Dividend Date: Some say Ex means “excluded”. It just simply means from the ex dividend date onwards, anyone who wish to buy ABC stocks (example) will no longer have the right to receive the announced dividend.
  • Record Date: It is when the ABC company will look their “records” who are qualified to receive the announced dividend.
  • Payment Date: It is the date when ABC company distribute the dividends to the qualified stockholders.

Computation of Dividends

This time we will going to learn how to compute stock dividends and cash dividends. We will assume you own 10,000 ABC stocks as an example.

  • Stock dividends, if ABC company announced that all qualified stockholders will receive 20% stock dividends, then how many stock dividends will you receive during the payment date?

a. 20,000 stocks       b. 2,000 stocks          c. 20 stocks

The correct answer is B, you will going to receive 2,000 additional ABC stocks based on its announcement.

  • Cash Dividend, if ABC company announced that all qualified stockholders will receive P0.25 per share, then how much cash dividend will you receive during the payment date?

a. P2,500                b. P250                        c. P2.50

The correct answer is A, why? It is because 10,000 stocks multiplied by P0.25 per share is equal to P2,500. Take note that you will not receive the exact amount due to taxes.

Now you know what a stock dividend is, it’s not that so complicated. Maybe you are now looking for the best dividend paying companies in the Philippines, let me just share the big paying not the consistent dividend paying. Please do your own research about this if you want to invest in the stock market and buy stocks that are high paying dividend.

Here are the some of the companies you might want to choose; PLDT, Globe, BPI, Semirara Mining Corporation, Aboitiz Power Corporation, Manila Water Company Inc.,  First Philippine Holdings Corporation, GMA and ABS-CBN Corporation. I am not suggesting/recommending these companies, although some of these are “giant companies”, we should look another things to consider when investing in the Philippine stock market, not just the “dividends”.

First Dividend Received

My first dividend in my entire life received from my COL Financial account when I bought BDO Shares, I am happy because I didn’t even know what is dividend before, until I learn in investing in stocks day by day, I am so happy because I know I have a great and wonderful future with my family.

Thank you COL Financial for this great opportunity, I learn investing from your website, I didn’t even attend seminar in investing, I learned everything about investment online. Thank you to the Filipino bloggers who share their knowledge and experiences in finances especially how to become financially free.

March 25, 2014 
Attention: 
This is to inform you of your cash dividend entitlement with details as follows: 
Account No. : 0300-XXX0
Stock Code : BDO
Cash Dividend (Php) : 0.30 / share
Ex-Date : February 21, 2014
No. of Shares Entitled to Cash Dividend : 70
Gross Amount (Php) : 21.00
Less Withholding Tax (Php) : 2.10
Net Amount (Php) : 18.90
Please note that the above dividend will be credited to the cash balance of your COL portfolio account by the end of the day. Should you have any questions with the details above, please contact us within 3 days. You can call us at 636-5411 to 24 local 161 from 8:30am to 5:00pm, Mondays to Fridays, or you may email us at stockcerts@colfinancial.com
Very truly yours,
COL Financial Group, Inc.
Important: This is electronically generated.  Please do not reply to this email or send any account instructions, confidential and sensitive financial data through this and other regular emails. It is not our policy to request from customers confidential information via regular emails.
 
Although it is just a small amount, but it is still a money, my first dividend, my second dividend received last June 11, 2014 for my SMPH Shares, my first 10 millions will be on my way ^_^
 
I  would also like to thank BDO UITF, FAMI SALEF, Phil Equity Fund Inc. and COL Financial Group for my stock investing. Investing in the stock market is the most complicated, but it is more exciting than UITF and Mutual Funds investing. You can also invest in stocks indirectly by investing in mutual fund equity and UITF equity fund. 

Learn Investing Today
It is the knowledge that matters, but not most. In investing, one should not only learn by listening to seminars or reading a blog like InvestmentTotal.com as a personal finance blog, but learn by doing. Your experience will teach you how to become a wise investor. Let anyone know about investing by reading some basic guide below. Please share these pages to your loved ones.

How to Invest in the Philippine Stock Market?: Since we discuss about dividends, let me share my point of view about how to easily invest in the Philippine Stock Market, you can choose your stock broker, but personally, I am using COLFinancial as my stock broker.

How to Invest in Philippine Mutual Fund Companies?: Investing in mutual funds is really easy, all you have to do is to add money to your mutual fund account and let the fund managers invest your money for you. Personally, I am investing money at First Metro Asset Management Inc., and Phil Equity both are in equity funds.

Unit Investment Trust Fund Basic Guide: Mutual funds and UITF has similarities, you can invest in mutual funds at First Metro Asset Management Inc, Phil Equity, Phil Am Management, Sun Life etc. But to invest in UITF, all you have to do is ask your bank on how to invest in UITF. Personally I am investing at BDO UITF, because of their Easy Investment Program, just put money in your savings account, and it will have an “auto deduct” from your savings account to your UITF fund, for as low as P1,000. Mine is P2,500 per month.

So what can you say about receiving our first dividends? Exciting? Right? I hope you learn something about how to start investing in stocks today, thank you for being a regular visitor of InvestmentTotal.com. Focus on prosperity and you will prosper. Act now, start investing, time is money.

Money Quote and Saying for the Day:

Waste your money and you’re only out of money, but waste your time and you’ve lost a part of your life. –Michael Leboeuf

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