My college Prof. said we need to buy $10,000 worth of a srock that pays a good dividend. I'm not really sure how that works. If I buy $10,000 of PWE (for my mock portfolio), how much of a dividend will I get per month?
lyz........there are more dog deks on this board than flea's on a hungrydog's back...........like phoenex "Red rocket".......................etc....heh..........heh.......Reeeeeeeeeeeed Rooooocket!!!!!!!!
1) Understand what you are buying (or not buying, since it is fake money) before entering into financial instruments such as stock, mutual funds, swaps, etc.
2) Never ever ever E-V-E-R put all your money into one stock or one industry.
At todays sp of
At todays sp of $13.07 you will get 765 shares for $10,000 that pay $0.1127 per share, per month after the canadian tax deduction and the conversion into American dollars, therefore you will receive an annual dividend of $1034 or 10.34%. These are figures straight from my CS account so I know they are very correct.
PWE currently sells for $13 a share. $10,000 will buy you 760 shares of PWE (depending on how much your broker charges for the sales commission).
Currently PWE pays .15 cents a month per share in distributions. That's paid in Canadian money. If you are American, the Canadian government will withhold 15% in tax and you will lose a bit more in the currency conversion because the Canadian dollar is currently worth about .91 cents in American dollars. So after Canadian taxes and currency conversion you will clear about .10 cents in American money for each share (unit) of PWE you own.
If you are Canadian, that comes to $114 a month in Canadian dollars. If you are American that comes to $76 a month in American money. In American dollars that comes to an annual return of about 9%.
If you were to re-invest all your distributions in new shares each month and if the unit price stayed at $13 a unit, at a 9% rate of distribution you would double your money in a little less than eight years.
Good luck with your class.