Afrikeen Wealth

  Dividend Reinvestment Plans (DRIPs) are a shrewd tool for investors looking to harness the full potential of their dividend-paying stocks. Automating reinvestment of dividends to purchase more shares through DRIPs offers a simple and effective way to compound growth over time. Let us explore what DRIPs are, the different types available, how they work, and their pros and cons. We'll also discuss when it might be wise to stop reinvesting dividends to ensure you maximise your investments. What is a DRIP Program? A Dividend Reinvestment Plan (DRIP) allows investors to reinvest their cash dividends into additional or fractional shares of the existing stock on the dividend payment date. Thus, instead of receiving dividend payments in cash, the dividends are used to purchase more shares of the company's stock, mainly at a discount and without paying brokerage fees. Dividend Reinvestment Plans  Types and Examples 1. Company-Sponsored DRIPs a.     ...

  Exchange-traded funds (ETFs) are becoming an increasingly popular investment vehicle for the experienced investors and attracting begginers and prospective investors. ETFs offer a blend of the best features of mutual funds and individual stocks, providing diversification, liquidity, and lower costs. Let us eplore what ETFs are, how they work, the different types available, and how to get started with ETF investing. ETFs Markets What is an ETF and How Does It Work? An ETF, or exchange-traded fund, is a type of investment fund and exchange-traded product that holds assets such as stocks, commodities, or bonds. Unlike mutualfunds , ETFs trade on an exchange like a stock, allowing investors to buy and sell throughout the trading day at market prices. ETFs Structure and Functionality Holdings: An ETF holds a basket of assets, which can include stocks, bonds, commodities, or a mix of these. The specific assets held by an ETF depend on its investment objective. Trading on Exc...

Bonds are debt securities governments, municipalities, and corporations issued to raise capital. When you buy a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity. Let us have a detailed look into how bonds work and how to invest in them. weighing bonds What to Know About Bonds Bond Face Value (Par Value) The bond's face value, or par value, is the amount it will be worth at its maturity date. It is the reference amount that the bond issuer uses to calculate interest payments. For example, if a bond has a face value of $1,000, the bondholder will receive $1,000 when the bond matures. The face value is also the amount on which interest payments are based. Bond Coupon Rate The coupon rate is the interest rate that the bond issuer agrees to pay annually on the face value of the bond. This rate is expressed as a percentage. For instance, if a bond has a face value of $1,000 and a coupon...