Understanding the Stock Market: Quick Thoughts on Umeme’s Dividend Payout
So today Umeme announced an interim dividend of Ushs 222 per ordinary share. Some “keyboard warriors” are already busy doing the Lord’s work, dismissing it as insignificant, and referring to the stock market as a scam. “Imagine you own 100 shares, and you get just 22,200,” they're posting First of all, how much were you expecting to earn?🫣 Do we really know how this dividend thing works? Granted 22,000 is not a lot of money by any stretch of the imagination. But total return from the stock market isn’t just the dividend, it's also how much your shares are worth now compared to when you bought them. Think of investing in shares like planting a tree: The dividend is like fruit you get every season. The share price is the value of the tree itself: over time, it can grow, making your whole investment more valuable. The total value of your investment includes: Dividends received over time Capital gains (the increase in the share price since you bought it...