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A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity.
A good broker will connect your shares to the DRIP so that each time you're due a dividend payment, the DRIP kicks in and uses the cash to purchase more shares. Let's walk through an example. Say ...
Free cash flow to equity (FCFE) is the cash flow available to the firm's common stockholders only. If the firm is all-equity financed, its FCFF is equal to FCFE. FCFF is the cash flow available to the suppliers of capital after all operating expenses (including taxes) are paid and working and fixed capital investments are made.
IBM should pay dividends of at least $6.71 per share next year, adding up to roughly $6.2 billion in total dividend expenses. And these costs are becoming a smaller portion of IBM's growing cash flow.
Download as PDF; Printable version; In other projects Wikidata item; Appearance. move to sidebar hide This is a list of publicly traded companies that offer their ...
Even fewer can match its massive free cash flows, ... For example, the $1.67 dividend per share IBM paid on June 10 was a $0.01 step up from $1.66 per share in the previous four payouts. Though ...
Generally, a dividend cover of 2 or more is considered a safe coverage, as it allows the company to safely pay out dividends and still allow for reinvestment or the possibility of a downturn. [ 1 ] [ 3 ] A low dividend cover can make it impossible to pay the same level of dividends in a bad year's trading or to invest in company growth.
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