Enterprise%20Lesson%203

1
How do we make a return from dividends?

• Enterprise Lesson 3
• Reaping the dividends
• Aim to understand what dividends are and how to
  make a return from them.

2
For starters

• How well do you think your shares did last week?
  Did your investment pay off?
• Extension evaluate last weeks investments.
  Check your Portfolio and Mini-league. What did
  you do well? What could you have done better?

3
By the end of today, you will be able to

• explain dividends, potential dividends, and the
  dividend yield.
• calculate the dividend yield.
• come up with a trading strategy based on earning
  dividends.

4
Remember your mission

• This week well learn one way to accomplish your
  mission to make the biggest return possible from
  dividends.
• What are dividends? How is the dividend of a
  celebrity set?

To make as much money as possible by investing
imaginary money in celebrity shares.
To make as much money as possible by investing
imaginary money in celebrity shares.
5
Dividends?

• Remember, dividends are paid out every Friday on
  each share you own. A few tips
• The more press coverage the celebrity receives,
  the higher the dividend.
• The more shares you own in a celebrity, the
  higher the dividend payout youll receive from
  that celebrity.
• The ideal celebrity offers a high dividend at a
  low price.

6
Reaping the dividends

• The relationship between dividend and price is
  called the dividend yield.
• Do you think investors prefer high or low
  dividend yields? Why?
• A useful hint find out about potential dividends!

Dividend yield dividend price 100
7
Extension activity/homework

• Use bbc.co.uk/celebdaq to look up this weeks hot
  celebrities. Complete the worksheet by looking at
  each celebs profile. This will help you make a
  return from dividends.

8
Invest!

• Use your dividend yield table to choose the 3
  celebrities that you expect will bring in the
  biggest dividend payments during the week.

9
Celebwork
Bring in your favourite press source of celebrity
news next lesson (and, of course, dont forget to
follow the news).