Lovely Asline88, suggest a short guide on how to trade/invest in Equities and Proportional Dividends, so that's what we're doing today. This is a direct follow up from the Putting Those BATs (and Some Companies) to Work post, check that out too.
Equities, in this case, refers to trading stock, that's entitled to a proportional dividend, given by the formula:
[full share dividend] * [amount of shares you own].
If you had 0.5 shares on Citi Group, and their dividend payout per share was $1.00, you'll be receiving 0.50$. If you owned 0.25 shares, you'll be receiving 0.25$, and so on.
Funding Equities is a mix of both active (speculation on shares prices) and passive revenue (holding your stocks for dividends payouts).
You may want to keep a close eye on the stock market, looking for companies whose price you believe will go up, or you may want to leave your stocks there to collect dividends when they're due. One option isn't particularly superior to the other, but the beauty of it is that you have both.
Mixing them is a powerful tool, and doing so in a way that fits your portfolio goals is the key to success.
That sounds great, now, how do I do that?
Let's trade a dollar into Bank of America. Yes, a dollar, because that's one of the selling points of Equities, the investment is minimal.
Note: the following guide assumes that you are an Uphold account holder with funds to trade with, and it's made from Uphold's mobile app.
1. On the homepage of your Uphold app, you can go directly into Markets.
2. Inside Markets, you will see all your trading options, go to the right till you can select Equities, and choose one from the available selection.
3. Once you have decided from a company, you will see its market performance through different amounts of time, particularly relevant if you want to actively trade on the market. If the deal seems promising, go ahead and select transact.
4. You are now able to choose which of your accounts you will use to pay, and how much of the selected stock you're buying.
5. Confirm the trade, and watch your new stock be added to your portfolio, from now on the call is yours.
A few things worth noting:
- The US stock market is open for trading weekdays mornings.
- Each asset has a different cut day (the last day you're able to buy stocks and be eligible for the upcoming dividend) and payday (when the company gives out dividends, which may be multiple times a year).
- Not all stocks pay dividends, so searching for the dividends payout history a company is import for this type of investment.
- Mind that even if you don't trade, your portfolio value will be updated (and fluctuate) accordingly to the current market price of your stocks.
Links list:
Check out Brave if you haven't, and get some BATs to trade with.
Give Coin a try, and grab some XYO while walking.
Feel free to follow me here on Publish0x.
