How To Own Ripple And Get Dividends
Do you know that there is a way you can own Ripple and collect dividends?
It's true, I've researched and have found a way to get your own piece of a Ripple dividend.
It all goes back to when Ripple was just getting started and needed some cash. It went in search of investors, many of whom are private companies and therefore not investable to you or me. (Ripple is a private company too , which means you can't buy ownership in it) But there were a few companies that are public and pay a dividend that purchased a piece of Ripple.
If you buy shares in these companies, you will not just own XRP but the company behind that coin. When possible, I almost always prefer to own the company.
Why? Well, think of it as a bottle of milk and a cow. You can buy the bottle of milk and maybe sell it for more to someone else, but if you own the cow you can get more milk every day!
So buy the Ripple company, and profit from their future endeavors. Did I mention that Ripple also owns about 60% of the total amount of XRP? So yeah, you get the milk AND the cow by following this strategy.
Here are the four public companies that own a part of Ripple and will pay YOU a dividend to own them.
Seagate Technology LLC (STX) – 4.7% Dividend
Series A and B funder. Estimated ownership of 4.3%
Seagate is in the business of hard drives for storing digital data. With the growth of could storage and hyperscale markets there are plenty of avenues for their products.
In addition to Ripple, they have also made recent venture capital investments into Reduxio, Egnyte, Virident Systems, Cloudscaling, and eASIC
Banco Santander (SAN) – 4.2% Dividend
Like Seagate, Santander invested in both the series A and B. Estimated ownership of 4.3%
Invested $4 million out of $32 million raised in the Series A.
Santander is a bank that mainly operates in Brazil, UK, Spain, Mexico, and Chile – but they are elsewhere too.
They own pieces of iZettle, myCheck, cyanogen, Kabbage, Digital Asset Holdings, Elliptic, SigFig, Socure, PayKey, Tradeshift, Curve, Pixoneye, Gridspace, and ePesos.
SBI Holdings (SBHGF) – 1.2% Dividend
Series B investor. Stated ownership of 10.5%
SBI is a Japanese company that invests in many different companies. It is basically a company that invests in other companies and creates new entities. Recently, they created a special unit to seek out and invest in the best new AI and blockchain companies.
This company invests in so many things, I can't list them all here. Go to their page on CrunchBase to see how many pies they have their fingers in.
CME Group (CME) – 1.7% Dividend
CME is the world's leading and most diverse derivatives marketplace.
Estimated ownership of 5% through CME Ventures.
Also owns a piece of Digital Currency Group which was part of the Angel funding for Ripple labs as well as in the series A.
Also invested in and owns part of 1QBit, CrossLend, Digital Asset Holdings, Dwolla, Filament, iguazio, Nervana, Orbital Insight, Powerlytics, Privitar, SparkCognition, and Wickr.
Also, for the past 7 years this company has paid a special dividend in December. Last year they paid out $3.50 per share. This actually makes the dividend almost 4%.
The Research & Math
I want to mention that except for SBI Holdings, no other company has stated exactly how much of Ripple they own. So that made it a guessing game. I used commonly bought percentages for each round based off my research.
It is said that between 15-50% of a company is sold off during a Series A funding.
Forbes.com states:
When you raise Series A funding, you’ll issue additional shares of stock that will go to your investors, and you can expect those investors to take anywhere from 25% to 50% of the company.
Techcrunch states:
Generally, the valuation range results in the group of Series A investors taking 15-25 percent of the company.
During the series B funding, a further 33% of the company is sold off. From Lawtrades.com:
If you get to the Series B round, expect a dramatically different mindset from earlier funders. Whereas Series A and seed investors believe in your vision and have bought into the prospects of your company, those in Series B want to see that you’ve successfully progressed and satisfied important milestones. They typically see about 33% ownership, which will dilute all previous ownership percentages.
13 companies invested in Ripple's series A funding. So we can estimate that if each company invested the same amount, they would each have purchased nearly 2% of Ripple.
10 companies invested in the series B. If we say that 33% of the company was sold off, then each company purchased 3.3% of Ripple if the investments were an equal amount.
So, if equal, each company that invested in the series A and B would own approximately 5.3% of the company. BUT a series B funding dilutes the previous holders, this images shows that nearly have the ownership percentage is lost to a Series A investor if they don't buy into the series B.
So let's make that a 50% dilution to the series A investors. That means each company would currently own around 4.3%. But SBI Holdings (which only invested in the Series B) says they own 10.5% of Ripple so they obviously invested a higher percentage.
Yeah, it's a mess. So you can see why 3 out of the four companies ownership percentages in Ripple are estimated.
2 Ways To Play This Strategy
1: The first way is to just put 25% in each company. This will give your investment amount an approximate ownership percentage of 6% of Ripple.
You will also collect 3% in annual dividends.
2:The second way would be to go heavy into SBI Holdings since they own the most of Ripple. So that would mean you put 40% into SBI and 20% into each of the rest.
Your investment money would buy 7% of Ripple and get you an annual dividend of 2.6%.
Remember, both ways also include part ownership in EVERYTHING else those companies do and own. That is some MAJOR diversification right there.
You would also get around $3.50 in a special dividend from each full share of CME Group that you hold.
By using this strategy you can buy your way into owning the Ripple cow as well as the 60% of XRP milk it holds.
Holy cow man! I didn't realize any of those cos. owned a piece of Ripple. That's some legit solid companies too. I've generally been a fan of Seagate overall.
Yeah, if you like Ripple this gives you plenty of exposure as well as a dividend and diversification.
Not too shabby.
Isn't ripples number one drawback that too many banks want to be involved though. It was the first crypto I ever heard about outside of bitcoin, and it has a special place in my heart although at the time I did not know enough about it to buy.
In crypto, you want as many users of your coin as possible. Popularity breeds demand.
That’s an interesting strategy to earn dividends from Ripple’s success by hodling shares of the companies who own Ripple.
I was hoping that TenX would be paying dividends on their token, so I invested in a bunch, but they have stepped back from their original vision for the token, and I’m getting more and more disillusioned with them as the time goes by.
Dash, on the other hand, is proving to be a solid investment. I don’t own anywhere close enough Dash to be running my own masternode, but I invested 10 DASH in Masternode Shares and it pays me ~6% annual dividends paid out every fortnight.
My bank in Sweden is also hugely supportive of the Blockchain tech (similarly to Santander), so I trust them enough to be invested in a couple of mutual funds that they manage.
Oh wow, 6% DASH dividend - that's great!
About that TenX thing, you really got to be suspicious about talk. I like to see an investment walk the walk before I buy in.
Very true, lesson learnt. I might still make some profit from my investment, if the price goes up, once they release their new card for the US, European and Asian markets.
Indeed, 6% annual return on DASH is pretty sweet, because the price of DASH is going up long-term. So the actual ROI measured in fiat currency can turn out to be much higher than the nominal 6% in DASH.
Most of this I didn't know, was hesitating about ripple somtime back but looks like it's worth shot. I read another yesterday related to how one can earn dividends and ripple was mentioned among the very possible ways to maximize on the shares.
Realistically if your investment buys 7% and you get just about 2.6% of annual dividends, that's some good money annually.
Thanks for this @getonthetrain
Oh, I don't think there is any way to get a dividend directly from XRP right now.
Interesting - I personally am not a fan of Ripple (for many reasons, maybe also because I told myself not to put $100 into Ripple when it was $0.30 hahaha), but if you believe in each company's other endeavors than this could certainly be a winning strategy.
The only thing that could deterr people would be that price swings in Ripple could affect all of these companies, so as you are diversifying in a sense your diversified portfolio is still going to take a hit from downswings of one essential player. However, in essence that's exactly how the whole cryptosphere works (or even stocks in general - if the general health of the market is low, many truly diversified positions can still take a hit) so, maybe not the most essential point but certainly something to think about.
Thank you for the article!
Certainly following this plan is different than the common path, but I think it has merit. Thanks for your comment!
I'm not a fan of XRP either - I don't own any. This was just to help out those that may want to get in with divvys.
Thank You @getonthetrain I learned something New Tonight and I am Grateful to have a Fellow Arizonan who takes the time in being KIND to me on STEEMIT....................
Not a problem my friend 😊
I used to own Seagate a long time ago ...I sold at a profit. I like dividends though and I had no Idea that they were buying crypto ..I Might have to revisit owning them again - thanks for the heads up!
They were investing in a little crypto projects back in 2015, plus the dividend is decent.
All those companies look like a good investment.
But in my case I wouldn't invest with seagate. Years ago I bought a external hard drive from them, and the thing broke in less than 2 months... Crappy quality and I lost that money. I think I still have that hard drive somewhere full of dust.
Oh, that sucks but I wouldn't let that stop me researching them as an investment if there was money to be made.
The thing i hate is that some of those companies are trying to sabotage the rest of the crypto market, my bank is santander for example and the bank actually stopped me for 2 weeks from buying stuff from coinbase... thank god my country didn't allow that and told them to stop... Because of them i wasn't able to buy a drop in one coin, i could have doubled my money, they basically own me 200bucks, now i use revolut to transfer from and to coinbase
Sounds like the left hand doesn't know what the right hand is doing at the bank.
Good one. So all I have to do is buy stocks of one of the above mentioned companies. I already hold around 100 XRP tokens.
That's right, just own some of the above stocks and you will have exposure to Ripple and all the XRP they own.
This is a great idea and helps in persuing long term investments. Furthermore, cryptocurrencies are now penetrating and people should start being involved before it shouts high.