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Friday, September 30, 2011

Which to Choose as Stock Dividends: Cash, Property or Shares?

Investment is actually a long term enterprise. So it will be appropriate if the income from such an enterprise is not to be allocated for short term needs such as buying cars or furniture. Based on this understanding, when the time comes to decide what kind of stock dividends one wants to accept in the end of annual stock distribution, it will be wise to choose share and not cash or property.
Dividends in the form of shares will be a kind of saving which can only be drawn after a time. A shareholder may get a big percentage of shares in a company and he or she can't draw even a penny of it until the dividends sharing period arrives. However, when the time comes, probably the urgent needs had passed so that money is not needed anymore. This way, one can invest more with the share by buying again the share for next year.
Cash and property will not do the same as share dividends. There always possibilities that one has to pay an urgent need and he or she will produce the available cash. Meanwhile, property dividends will always tease one to spend the rebate for certain products.

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