Many newbie investors in the stock market seem to forget that capital appreciation is not the only way to earn money. As we’ve explained before in an article on How to make money using stocks, another form of income that stockholders receive is the dividend.
Dividends may come in the form of cash or stocks. Cash dividends are, obviously, cash amounts distributed to stockholders on record during a certain date. Stock dividends, on the other hand, are additional shares of the company given to stockholders at no cost.
In the Philippines, several stocks have high dividend yields which further increases the income potential of a stock or compensates for its price decrease.