What is a dividend? Dividend Yield | Dividend Payout Ratio

what is a dividend? what month do you get it? and what stocks are distributing dividends?

In this post I will explain what dividends are, continue those termsrelating to dividends, and that Finally I will try to list stocks which one regularly gives dividends each years, because not all shares pay dividends, and not all shares that pay dividends routinely give out.

Capital gain or the difference in the buying and selling price of our shares can benefit from dividends, to explain what dividends are, I will give a little illustration, for example, there is a meatball company, meatball company A is the name

Meatball A was broken into 10 pieces shares that represent ownership of In the meatball business, for example, you have two shares of Bakso A, which means you have 20% share ownership in the company, after a year of selling, it turns out that the meatball business has a net profit of 1,000 usd, meaning that you as the holder of 20% share ownership are entitled to 20%. of these profits, which means 20% of 1,000 USD is 200 USD, in short it is dividends, Why in short? because there is a next term, namely DEVIDEND PAYOUT RATIO, don't be confused just because this is an English term doesn't mean we can't understand, okay, make it a profit of 1,000 usd in one year, if you want it's easy just share these benefits directly to all the shareholders of the meatball A it's done, it's not complicated, if you have one sheet you get 100 usd if two pieces are 200 usd and so on, but in the real world a company needs money to grow. Yes, if all of the 1,000 usd is distributed to shareholders, what will the business be like if it is stagnant, or if it goes down.

In the meatball A business, so that some of the money can be used to increase capital,
for example, to buy a bakso cart, so there are two carts, or add more seats and bowls, so that later the buyers will be able to buy more because there are more chairs and bowls available, and so on. What is the goal? purpose of buying capital goods are nothing but so that years in the future if you can add more here
sales are hopeful ends fortunately the net is added too more than in 2021, or for example not buying anything, no bought to increase business capital The money can be saved by the company as a reserve fund, in case the business is disrupted, so you don't immediately go bankrupt when there is a problem, return to the dividend payout ratio, The 1,000 usd means there are two choices now, one net profit is shared with all shareholders, and the second option is that part of the net profit is given to the shareholders, the other part goes to the company's pockets, determines like how about it, usually at the beginning of the year then there will be a general meeting of shareholders there will be informed by the leaders of the company, what percentage goes into the pockets of shareholders, what percentage is retained for the benefit of the company, for example 40% for holding shares, another 60% means being kept in the company which means, dividend The payout ratio or dividend payout ratio is 40% in the case of the meatball business
the net profit of 1,000 usd means that there will be 400 usd distributed to all shareholders, because you own 20% of the shares means you are entitled to 20% of the 200 usd which will be distributed to the shareholders earlier. Okay, you can understand at this point, go ahead, I will explain the next terms when it's dividend payment season, like lots of articles, in newspapers, or online or anywhere discussing company X will share dividends. Note the date when you clicked it. contents confusing how to read this. usually the person is confused because there are four of these terms in the article For example, there are

• CUME DATE
• EX DATE
• ROCORDING DATE
• PAYMENT DATE

Cume Date, which stands for is Cumulative Date is the day last, where if you bought Bakso A shares earlier on April 25, it means that your name will be recorded as a shareholder entitled to get dividends or part of the proceeds from the business that Bakso A did in one year yesterday in 2020, if you buy it the next day on the 26th / 27 April will still get dividends or not, the answer is no, because the Cume Date itself is the last day you can get the opportunity to get the dividends. If you bought it before April 25, for example, the previous month, did you get dividends or not? The answer is that it depends, if you sell the shares before the 25th is over, your name will not be recorded in the shareholders who are entitled to receive dividends, but if, for example, you bought meatball shares before the Cume Date, and you still don't sell them until the close of the Tengal 25 market. Your name will end on the list of dividend recipients.

Okay, the second one is Ex Date or stands for Expired Date, what is ithat? That is the day you want to buy the shares on such a date you won't be included in the list of shareholders that will be divided, the last chance is on the Come Date, right, the name is the Expired Date, meaning the offer is already expired, but you can't, but for example you had time to buy on the 25th and hold the meatball shares until the 25th ends, you want to sell the shares on the Ex Date, you can, and you will still be the dividend recipient even though you sold the shares on the Ex Date.

How do you understand or not? because of what, because you bought the shares and you didn't sell the shares until the Cume Date was over, so you still have the right to get dividends from the point that it's simple, it's a bit twirling. But in my opinion it's easy to understand, maybe what will make you confused is there is writing Cume Date Market regular, negotiated market, cash market actually this is easy. The point is that if we as buyers of shares through the securities application it is referred to as
regular market, just ordinary market, through buying and selling that occurs in the capital market, on trading days. For the negotiation market and cash market, you can ignore it first, just focus on the regular market, because we generally shop there.

Next there is a Recording Date, this is the date you as a shareholder don't have to do anything about it, date this is a notification to us all that the names of the shareholders entitled to the dividends will be dir ricorded or recorded on this date by the company. Now then there is a Payment Date or it can also be written as the Distribution Date, this is the day what we are waiting for, namely the day the dividend payment, with note you have the shares and you don't sell it before the Cume Date is over, where's the dividend's money going to go? sent to the investor's fund account each of us will later went straight in that day. The last one in the term is called Dividend Yield, for example, there are B shares that are willing dividend distribution, currently the share price of B is 100 usd in the market sheet, then came the announcement stating that B shares would be divided dividend 5 usd a sheet, which means
at the current price 100 usd dividend yield the point is 5%, is already like that.

I think that's enough for the term regarding DEVIDEND, next, now the next question is, what are the routines that distribute dividends every year, there are many examples of stocks such as Bank BRI, Mandiri, BCA, BNI and Unilever, Gudang Garam, Sampoerna, Indofood, Telkom Astrad and others.

For a more complete list, you can search the website "idx.co.id" or just search on Google with the keyword "IDX Hing Dividend 2021", which is an index or list of 20 stocks that have been selected by experts on the Stock Exchange which is routine dividends, at least in the last three years, and that is, its dividend yield not bad.
Is it better if you choose right away wrote the 20 shares, it's good to comply me, 20 This stock is a stopping point first you, to do some research
Himself deeper into each other companies, find a suitable company and if you can understand it with easy, that's all, hopefully after this you can read articles about dividends of a stock more smoothly again yes.