Dividends

If you have the extra money a good practice is to invest in companies that pay dividends. For example some of the top companies that should be considered as as follows:

  • General Electric (GE): 3.0% dividend yield.
  • Phillips 66 (PSX): 3.0% dividend yield.
  • Procter & Gamble (PG): 3.3% dividend yield.
  • Coca-Cola (KO): 3.4% dividend yield.
  • IBM (IBM): 3.5% dividend yield.
  • Sanofi (SNY): 4.2% dividend yield.
  • General Motors (GM): 4.6% dividend yield.
  • Verizon (VZ): 4.8% dividend yield.

In order to understand how much you could expect to from your dividend investment you need to know the Net Income figure for the companies you are looking to invest in. From here you can apply the following. Divide the net income figure amount by the total number of outstanding shares, which you should be able to find in a stock quote. Dividing the net income by the outstanding shares will give you the net income per share. Then, multiply this amount by the company's typical payout ratio, converted to a decimal.

From here you can begin to estimate how much you can expect to earn from your dividend investment.