# Explain me Dividends



## Butters (Apr 20, 2012)

I've been thinking of buying stocks, I've never done it before

But if I bought stocks in say, TD Bank

http://tmx.quotemedia.com/quote.php?qm_symbol=td

And Lets just say I have 20k to invest

Can someone explain it a bit?


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## caricole (Mar 12, 2012)

1) You open a discount broker account (lets say TDW)

2) You deposit your 20K

3) you buy 200 shares a ± 83$ (yesterday close) (oups..edited from 89$ to 83$)

4) it will cost you ± 29$ commission

5) every 3 months they will deposit the dividends in you account (200 X 0,72 = 144,00$)

and thats it..that simple


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## OptsyEagle (Nov 29, 2009)

caricole said:


> 1) You open a discount broker account (lets say TDW)
> 
> 2) You deposit your 20K
> 
> ...


Unless they decide to stop the dividend, which they can at any time they please. Then you take the $15,000 that is left from the $20,000 you invested (stock should drop at least 25% on that negative news) and invest it into something else.

That is another scenerio. Although TD has never missed a dividend in over 100 years, it is important to know that it is not guaranteed. The faith one has in it is no less then the faith many of our American friends had in their banks 5 years ago and we all know how well that turned out.

The stock market is not guaranteed. Far from it.


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## Toronto.gal (Jan 8, 2010)

As you're new to investing, I would suggest you first 'hit the books' before buying stocks.

http://www.theglobeandmail.com/glob...ew-to-investing-hit-the-books/article1910171/

I would also say to be careful not to buy a stock at its 52 week high, which is just one of many factors to consider before buying a stock; dividend is another factor for many investors, but as mentioned above, it is not guaranteed. 

Good luck and welcome to the forum.


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## leoc2 (Dec 28, 2010)

Here is a list of books from an american website:
http://www.bogleheads.org/readbooks.htm


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## humble_pie (Jun 7, 2009)

would thread please forgive this interruption of regular programming with a special request. Toronto.gal i recall that you have got an ace short reading list for beginners. What i am wondering is whether you would be kind enough to produce this one last time. 

perhaps leo, too, would be kind enough to add a title or 2 from his excellent list of US works.

then when list was refined & polished into the Nifty Six Top Titles, we could ask the moderators to please store it as a sticky.

that way we'd only have to refer newcomers to the cmf-seal-of-approval Nifty Top Six. We wouldn't have to keep on dredging old posts out of archives ...

others may not agree, but i for one feel such a list should be kept short & snappy. Because an exhaustive bibliography will look overwhelmingly daunting to a new investor & we hope to encourage em, not discourage em.


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## Toronto.gal (Jan 8, 2010)

humble_pie said:


> 1. I for one feel such a list should be kept short & snappy. Because an exhaustive bibliography will look overwhelmingly daunting to a new investor & we hope to encourage em, not discourage em.
> 2. Nifty Six Top Titles, we could ask the moderators to please store it as a sticky.


1. I completely agree!
2. I have a 'Nifty Nine Top Titles' for beginners: 

- Investing for Canadians for Dummies - Eric Tyson/Tony Martin 
- Stock Investing for Canadians for Dummies - Andrew Dagys/Paul Mladjenovic 

*"Rather than overwhelm the reader with complicated information, For Dummies books tell you just what you need to know to learn a given skill, in plain English (no fancy long-winded words) and with a dose of irreverent humour. Lighthearted, but not lightweight, the For Dummies series empowers readers to meet and master challenges in their lives."*

- The Lazy Investor - Derek Foster [explains DRIP/SPP]
- One Up On Wall Street - Peter Lynch [humour + practical common-sense]
- The Little Book that Builds Wealth - Pat Dorsey [ explains the concept of a company's economic moat in simple terms]
- The Single Best Investment - Lowell Miller [role of dividends]
- The Naked Investor: Why Almost Everybody But You Gets Rich On Your RRSP - John Lawrence Reynolds [self-explanatory]
- The Four Pillars of Investing/The Intelligent Asset Allocator - William Bernstein


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## humble_pie (Jun 7, 2009)

lol there are 8 titles in the Nifty Nine 4 Neat Newbies but i think we should leave it like that.

so when they say But. You. Only. Have. Eight, then we can say Yeah that is your 1st lesson in finance.

now we have to ask the moderators if they might consider this as a sticky.

ps we should reformat how it looks ... more later.


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## Toronto.gal (Jan 8, 2010)

There are 9 books indeed! 

I think we should have a thread with book recommendations from CMF members, but it should be books on finance only [one could indicate the level next to it].

As it was your idea HP, I think you should create such thread. 

The Best Investment Books, According to CMF Members!


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## humble_pie (Jun 7, 2009)

what i have in mind is only a basic, simple list for new investors. T.gal's list is perfect.

i'm pretty sure that older, sadder & wearier cmf investors can easily find their own specialized books.


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## Toronto.gal (Jan 8, 2010)

I saw this book at Indigo yesterday and it made me laugh. :biggrin:


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## humble_pie (Jun 7, 2009)

Toronto.gal said:


> There are 9 books indeed!


there were 9, really ??

i am such a clueless crumb. I only saw 8, unless that last entry for william bernstein was actually 2 separate titles.

anyhow i'm working on a format & it's your list t.gal, because it's perfect. If mr bernstein has a double entry i'm going to cut him down to one offering because the message is tentatively titled EIGHT with WEIGHT.

the fewer titles the better imho. What we wish is for a newcomer to read maybe 1 or 2, not feel overwhelmed with a daunting bibliography of 28 ...


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