How To Live From Share Dividends: Here's The Guide According To Capital Market Practitioners

How To Live From Share Dividends (Share Shane-Unsplash Image)

YOGYAKARTA - Because currently economic developments tend to continue to change, making many people more interested in maximizing passive income. One way that is widely popular is to rely on stock dividends. So, what is the way of living from stock dividends?

What Is Stock Dividend?

Dividends are the distribution of company profits to shareholders according to the amount of ownership. Not only capital gains, dividends are one aspect that investors or shareholders take into account in determining long-term investments.

Companies that regularly provide dividends regularly can ensure that the industry is healthy in terms of finance.

Capital market practitioner and investor value, Rivan Kurniawan said that the dividend of shares offers several attractive benefits for investors. Investors can earn relatively normal passive income.

"By investing in shares of companies that provide dividends, you can feel the flow of passive income in a disciplined manner. This is very useful for those who want to have an extra source of income outside their main job," said Rivan Kurniawan, quoted from his Youtube channel on Tuesday (15/8/2023).

For those who want to divide shares as the main source of income, Rivan provides an easy method by sorting out the right shares. Choose a company that has a history of dividends that do not change and good development.

"Do a thorough research on industrial zones, the company's financial performance, and their dividend policies before making an investment decision. It would be nice if you try to check historical dividends for at least the past 3 years," Rivan explained.

Saat sebelum memutus membeli saham, seharusnya memiliki pemahaman tentang kebijakan dividend sebuah perusahaan. Alasannya, setiap perusahaan memiliki kebijakan dividend yang berbeda-beda.

"Pahami kebijakan dividend perusahaan yang kamu investasikan. Sebagian perusahaan bisa jadi membayar dividend yang lebih besar secara periodo, sedangkan yang lain mungkin menyeresahkan untuk mengalokasi lebih banyak dana supaya perkembangan bisnis," tuturnya.

Not only that, it is important to carry out long-term financial planning. Living from the dividend of shares requires careful financial planning.

"No matter how much income you need, how much capital you need to invest, and how you will manage the risk," he added.

Living from the dividend of shares is not a plan that can be realized overnight, it takes patience, discipline, and a deep understanding of the stock market. Choosing shares from companies that provide dividends tends to come from established companies and have stable performance.

"Actually, living from dividends is not an impossible matter to realize with a note, buy shares that arefundamentally healthy so that in the future the company can consistently provide dividends to shareholders," he concluded.

Types Of Dividend Types

Dividends are not just funds distributed to shareholders. Dividends have several types that investors or shareholders in fact should know. What types of dividends do you need to know? Come on, just take a look below!

1. Cash Dividend

Cash dividends are dividends that are distributed in to investors or shareholders in cash form. Well, this dividend will be subject to a tax that has been cut at the time of distribution.

2. Interim Dividend

Interim dividends are a type of dividend distributed to investors or shareholders before the company holds its annual bookkeeping. Generally, this dividend is distributed in the middle of the year.

We also added information "IPCC Distributes Interim Dividends of IDR 39.46 Billion" next month.

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