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Saturday, April 10, 2021

Is the NDAQ Stock Ready to be Bought?

Investors that are gearing up to buy the NDAQ Stock would have to start working fast. Since the NDAQ stock might just be trading ex-dividend, investors have to stop waiting for the perfect time. Most of the traders will be able to purchase the shares of this company before the 3rd of December. This will allow them to be registered as eligible for the dividend- something that they would be paid for on the 18th of December. 

What Seems To Be The Holdup With the NDAQ Stock?

The NDAQ stock has an upcoming dividend of $0.49 per share after the company went on to distribute close to $1.96 per share to its shareholders. When analysts looked into the last year of this company’s distributions, it was found that the stock had a yield trading for about 1.5% of its price of the stock of $127.12. Lest it is forgotten, we need to mention that while dividends are quite an important source of income, the health of the business is important as well. This implies that investors need to check up if the NDAQ stock would be able to bring back their dividends or get cut. 

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Most of the dividends paid are usually done so out of the profits of the company- which means a company paying more is in deficit. This would signify that the dividend is at a much greater risk of getting cut. Here, investors should be happy that NDAQ Stock is actually paying out 35% of its earnings. To put it simply, if the payout ratio of the company is low, the dividend is usually more resilient due to it. 

Let’s be frank, although NDAQ stock has quite an enticing dividend, there are risks associated. And if you intend to buy, you should be aware of the risks. 

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