Dividend Payout Ratio: Formula, FCF Coverage, and Traps
Learn how to calculate the dividend payout ratio, why GAAP EPS misleads, how to measure free cash flow dividend coverage, and how to spot a dividend trap.
Learn how to calculate the dividend payout ratio, why GAAP EPS misleads, how to measure free cash flow dividend coverage, and how to spot a dividend trap.
Learn how DRIPs and DSPPs work, the difference between transfer agents and brokers, compounding mechanics, and IRS tax rules for reinvested dividends.
Learn how the ex-dividend date works, how SEC T+1 settlement aligned it with the record date, why stock prices drop at open, and IRS holding rules.
Preferred stock vs common stock: voting rights, dividend priority, liquidation order, cumulative vs non-cumulative, and where preferreds fit.