Investors are often apprehensive about how changing interest rates will affect their investments. Record low bond yields look poised to break out of a 6-year range. Will rising rates squash stocks? Burst bonds?
June brings some extra dividends from funds which pay semi-annually. It’s also when investors have more difficulty understanding their account statements. A basic knowledge of dividends and how they’re reported can replace frustration with understanding.
A surprising number of investors lack a rudimentary knowledge regarding the nature of stock dividends. This knowledge gap contributes to a perpetual misunderstanding regarding security performance. Filling this knowledge gap will help foster an understanding of where dividends fit in an overall portfolio strategy.