HOUSTON - The oldest surviving artificial Earth satellite, Vanguard 1, turned 50 years old on Monday â and continued to turn in its orbit, just as it has done since its launch at the dawn of the Space Age. The craft is in a high orbit that promises to be stable for centuries.
Companies use dividends to pass on their profits directly to their shareholders. Most often, the dividend comes in the form of cash: a company will pay a small percentage of its profits to the owner of each share of stock. However, it is not unheard of for companies to pay dividends in the form of stock.
Despite the drawbacks, dividend reinvestment can be a valuable tool for investors. It requires little planning and costs nothing, other than the opportunity cost of the dividends. Over time, dividend reinvestment can result in new shares, which pay their own dividends. As a long-term investment, stock is often one of the best places to invest dividends. However, if you need the money soon, taking a cash dividend instead of reinvesting may be your best option.