Wednesday, April 18, 2007

The dividend

The dividend is the part of profit that a company delivers to its shareholders, usually paid in cash.

In a virtual atmosphere, like that one of SL, with a virtual stock market exchange (WSE), in which the rules are not so good, a company that periodically distributes a dividend is positively “reliable” (if one can talk about reliability in SL).

Currently, there are 45 companies quoted on the WSE and approximately 15-20 of them have already distributed some dividend.

Of course, we will see how regular this companies will be able to be as far as dividend delivery is concerned.

In the evaluation of a company, the Pb Asset Management filters the companies with a low price/dividend ratio, determining in this way which titles are more convenient to invest/trade/play.

Ps: The frequency of distribution of dividends is somehow arbitrary: there are companies which distributes their dividends monthly or even weekly.
The Pb Asset Management, for the its own investments, considers the price/dividend ratio on a monthly base.

Pasha Boucher
Translation by Mr Jo Bleac

No comments: