Ok so as title says, I am looking for some clarification on this one.
Lets say company XYZ pays a dividend of $0.80 and the current price is $20.00, representing a 4% yield, paid quarterly.
So simple math would mean you would need 100 shares of company XYZ to get paid $80 a year in dividends. This would mean that you would get paid $20 a quarter and that would reinvested into another share of stock.
So what happens say if you own 50 shares of the stock. Your payment for 50 would be $10 per quarter, not enough to purchase another DRIP stock. Does the company hold onto these earnings and waits for the next quarter and then releases a share? Or do they see it is too low and pay you out the $10?
Thanks
Submitted May 17, 2017 at 02:17AM by aussiecaleb http://ift.tt/2pT1AoZ
