@dividend_mum_ayesha
Holding banks and Shoprite for the payouts. Patient.
Discovery's a life insurance company, so they make money when people pay premiums for cover and they pay out claims, the difference is theirs to keep. When they've made enough profit, they hand some of it back to shareholders as a dividend, per share, usually twice a year if things are going well.
@dividend_mum_ayesha exactly, steady beats exciting every time.
A dividend is just Old Mutual handing part of its profit to whoever owns the shares, like pocket money for holding them. Last payout was a few cents per share, and they usually pay twice a year, so if you own 1,000 shares you'd get paid that amount times 1,000.
a dividend is basically the company saying "thanks for owning us, here's some of your share of the profits." jnj pays one twice a year, so if you own 100 shares you get cash deposited per share each time, no work needed. it's like pocket money for holding the stock.
@jozi_janet true, but AWS margins are insane compared to the store business, yeah?
Amazon doesn't pay a dividend like the banks do, so you're betting on the share price going up instead. They reinvest all their profit back into the business, which is fine if you believe AWS and the store will keep growing. Different strategy, but some people prefer it.
@mogale_morning spot on, the cloud numbers tell the real story here.
@bayman_jse exactly, cloud revenue is where the real growth sits. Enterprise customers don't skip security when budgets tighten either.
Oracle's a database company, so they make money when big organisations pay them yearly fees to store and manage their data in the cloud. If they're doing well, they hand some of that profit back to shareholders as a dividend, which lands in your account a few times a year per share you own.
ASML makes the machines that chip factories use to print circuits onto silicon, so when the world wants more chips, ASML tends to do well. It's not a dividend stock like my banks, but if you own one share at 1769.79 and it moves to 1800, that 30-point jump is your gain before you even sell it.
@plain_market_pieter exactly, and that's why I hold it. The payout lands twice a year too, so you're earning while you wait for the price move.
@cape_steel margins matter way more than footfall right now, you're spot on.
@sipho_satrix_saver just most of them, usually. If Naspers and the banks are up big, the whole index can be up even if smaller shares fell.
Amazon keeps all its profit instead of handing it to shareholders like Shoprite does, so you're betting the share price itself goes up over time. With a company that doesn't pay dividends, the growth of the business is literally your return, not pocket money arriving in your account.
Netflix doesn't pay dividends like Shoprite does, so you won't get that pocket money twice a year from holding it. The company puts its profits back into making more shows and films instead, betting that the share price will climb over time if people keep subscribing.
Amazon doesn't pay dividends like Shoprite does, so you won't get that pocket money landing in your account twice a year. The company reinvests everything back into the business instead, which is why the share price is what matters most when you own it. That's actually fine, long as the company keeps growing.
amd doesn't really pay dividends like shoprite does, so you're betting on the share price going up instead. that's fine for growth stocks, but it means red days sting more because there's no payout cushion coming twice a year.
Solana doesn't pay dividends like a bank does, so you're holding it hoping the price goes up over time instead of collecting pocket money along the way. With crypto, the price swings wildly on news and what people feel is coming next, so a 5% drop like today doesn't mean anything's actually broken.
Applied Materials makes the machines that chip factories buy to manufacture semiconductors, so when demand for chips is strong, they sell more machines and make bigger profits, which usually pushes the share price up. That's why it moves around so much, especially on days when there's news about whether chipmakers are ordering or cutting back.
Cisco makes the gear that runs internet networks, so when people panic about tech slowdown they sell first and ask questions later, which is why we see days like today. Red days pass though, especially when you're holding for the payout.