Finance 101: Dividend Yield

Jul 28, 2016 by

If you invest in individual stocks, the dividend yield is a key metric that you will want to consider. What is Dividend Yield? Mathematically Dividend Yield is the ratio of annual dividends paid to share price of the stock. The higher the dividend yield, the greater “bang for your buck” an investment will give you. Let’s take the example of two people with  $1,000 to invest. If person A puts their money in a stock with a dividend yield of 5%, they will receive a total of $50 for the year. If person B puts their money in a stock with a 3% dividend yield, they will only receive $30 in dividends for the same year. Although both people invest $1,000, the investor with the high dividend yield investment receives more in dividend payments....

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Paying of Debt: Snowball vs Avalanche...

Jul 12, 2016 by

Have multiple debts to pay off?  If have done any research into the best way to tackle your debt, you have probably heard about the two most popular methods – the Snowball and Avalanche. But what are they, and what’s the difference? Debt Snowball Method This method of paying off debts recommends paying off your smallest debt amounts first. This means paying the minimum owed on each loan, then putting any extra cash available to pay off the loan with the smallest balance. The theory behind this is that it helps build confidence and momentum. Once you see your first debt paid off, it will be a huge pat on the back and motivate you to stick with your plan. Debt Avalanche Method This method of paying off debts recommends paying off debts with the highest interest first....

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3 Tips to Build Credit

Jul 7, 2016 by

Are you looking to build credit, but aren’t sure how? Here are 3 tips for you to consider to help set you on the right path. Become an authorized user (on someone else’s account) If you have a spouse, significant other, or even parent with good credit and financial habits, consider being added as as an authorized user on one of their credit card accounts.  This is an excellent way to build credit without having to take on any debt.  If you have no or bad credit history, just by being added as an authorized user on an account with good credit history, your credit will improve.  You don’t even need have to have a credit card for the account! As long as your name is on the account as an authorized user, this will...

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