Dividends are a great source to earn money for investors in Australia and undoubtedly investors put their efforts to get some of the high dividend yield stocks that can provide them good timely returns. Though there has been lots of debate around the significance of dividends. Some are in favor of earning dividends through stocks investing while some are against it. Those who are against of giving them much priority argue like they are neither good for local economy nor for individuals.
But, Hey Hold On! Imagine a scene How great it would be when you are at home reading newspaper, relaxing totally by the side of the pool and living your life on dividend checks that arrive on a timely manner? Definitely it would be great. Nothing much one can ask in today’s busy and hectic lifestyle where you are being paid while being at home because stocks on which you have chosen are performing accordingly and so you are eligible to get dividends from the overall profit.
Personally Speaking, it’s not wrong to earn money through dividends anyhow. Why it would be wrong as you have invested your time and money while choosing high dividend yield Australian asks dividend stocks. I also think that choosing best dividend stocks in Australian ASX Stock Market helps you to increase your wealth. Some months ago, I came across an article which saying that if you choose 10 stocks for your portfolio than 3 out of them should be high dividend yield stocks from stock market.
Also, it’s important to note here that if you are buying a stock between it’s ex-dividend date and distribution date then you will be liable to pay the other investor’s tax also.
There are 3 important dividend dates that matter to dividend investors mostly and these are declaration date- date on which a company declares its intention whether it will be given dividend to shareholders or not. Record Date – Also known as Ex-dividend Date and it’s the date upon which company takes the records of shareholders who owns their stock and nominate them to pay upcoming dividend payments. It’s usually the fourth business day before the payment date.
To receive payments on the payment date you have to purchase a stock prior or up-to its ex-dividend date. If you buy a stock later ex-dividend date, you will not receive any payment from the company. Suppose you have purchased a stock of Pepsico on its ex-dividend date then you will get upcoming payments while on the other hand if you have purchased after it’s ex date then you won’t be getting any payments.
Author Bio: Author loves to write article about Australian Dividend Stocks , ASX dividend stocks, best dividend stocks in Australia, dividend dates in Australia, etc. This Article was based on How to earn wealth from dividends in Australia.