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Why would i buy stocks ?

  • 29-07-2015 6:28pm
    #1
    triple nipple
    Registered Users, Registered Users 2 Posts: 334 ✭✭


    Hi all,

    Just looking for a bit of advice/explanation. If a stock is worth €80 and the yearly dividend is like €4, what is the advantage of owning this ? Am I missing something ? Why would I or anyone else bother with this ?

    Thanks for any replies ( I have no knowledge of the stock market or how it works as you can probably tell from my question.)


Comments

  • #2
    Atlantic Dawn
    Registered Users, Registered Users 2 Posts: 84,761 ✭✭✭✭Atlantic Dawn
    M


    If your money was in the bank it would be earning typcially around 1% or 2% interest per year. Stocks can rise and fall so if you got a €4 dividend and the stock went up €10 in a year you would be doing far better than having the money in the bank.


  • #3
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,876 ✭✭✭The J Stands for Jay


    A 5% yield is much better than any bank account out there. Plus the gains can be more tax efficient than interest with 41% DIRT.


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