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There are three types of share investment.

  • More
  • idend
  • Shareholder Benefits

Beginners tend to image only "buy cheaply and sell high", but long-term investment is also important for dividends and profits.

In this article, we will organize the profit mechanism of stock investment, why the stock price rises, and the thinking for beginners.

What is stock investment?

Comment

Stock investment is a part of the company.

If you buy a stock, it will be part of the owner of the company.

When a company grows, we calculate share price and profit reduction.

Profit of stock investment1. More

The most easy-to-image profit

The risen profit is the profit obtained when sold at a higher price than the purchased price.

For example:

Purchase priceSale priceProfit
¥1,000(税別)JPY1,500JPY500

This is called "Capital Gain".

In short-term sales, there are many cases that aim for this value increase profit, but the price ctuation risk also increases.

Why the stock price rises?

The following factors affect the stock price.

要因内容
Business PerformanceIncrease sales and profits
ExpectationsNew business and market expansion
MoreImprove investor requirements
Low interest rateIncreases the relative appeal of shares
Shareholder ReturnIncreased sales and stock purchase

The stock price is not only the past, but also the future expectations.

Therefore, even good financial results may fall below market expectations.

Income of shares2. idend

Comment

idends are a mechanism to distribute a part of corporate profit to shareholders.

For example:

Number of shares held1idendidend
100 shares50YEN(JP)¥5,000 per year

idends are an important revenue source for long-term investment.

However, if corporate performance is worse, it may be deducted or distributed.

What is dividend yield?

idend yield is an indicator of how many annual dividends exist for stock price.

The basic formula is:

idend yield = Annual dividend ÷ Share price × 100

For example:

  • Stock Price1,000yen
  • Annual dividend 50 yen

The dividend yield is.

However, the higher the dividend yield, the safer.

In some cases, there may be cases where there is a higher yield in the stock price drop, or the future reduction is woven.

Income of Shares3. Shareholder Benefits

Some companies offer the following benefits to shareholders:

  • Shopping
  • Products
  • Meals
  • Discount Ticket
  • Service Ticket

Shareholder benefits are especially popular with Japanese stocks.

However, the benefits may be changed or disco、ed.

If you make investment decisions with a special offer, it will be easier to find the risk of loss of stock or business performance.

Not only profit

Risks in stock prices

Stock prices may be lower than the price you bought.

For example:

Purchase priceCurrent PriceLosses
¥2,000(税別)JPY1,200JPY800

This is called "Capital Loss".

Shares are not the original warranty, unlike deposits.

Why beginners are easy to lose?

The following is a failure for beginners to fall.

Failure内容
HighJump on a popular strain
In Investment1Too much money on the symbol
Short-term tradingSell by feelings
Contact UsSNS and news
DelayLeaving damage

In particular,感情 buying and selling is a major failure factor.

If the stock price rises, it will be difficult to buy, and if it falls, it will be easier to sell.

Why Long-term Investment is Important

It takes time to grow your company.

In addition, you can expect compound interest by reinvestment of dividends.

The basic image of compound interest is as follows.

A = P × (1 + r)^n
Signs意味
AFuture amount
P
r利回り
nOperating period

The longer the profit, the higher the effect of the operation gain.

However, it is a way of thinking that compound interest is effective when the operation of plus continues.

If the target value is lowered or decreased, it will not be affected as expected.

Recommended strategies for beginners

It is easy to understand that beginners are aware of the following first.

  • Nを
  • Consider Index Investment
  • Distribute time on monthly basis
  • Long-term ownership
  • 1. Don’t focus on funds on symbols

In particular, beginners can easily start decentralized investments with investment trusts and ETFs linked to market averages.

When buying individual shares, it is important to check the performance, financial, dividend and stock price.

Common misunderstandings

misunderstandingIn fact
Shares GamCan be used for asset formation in long-term and distributed
idend safeThere is a risk of decreasing or decreasing stock price
Short-term tradingHigh difficulty
Easy to useAbolishment or business performance
PopularityIf the expectation is too high, the fall
  • Income of share investments rises, dividends, and shareholder benefits
  • Share price not only works but also future expectations
  • idends become an important source of long-term investment
  • The shareholder benefit is attractive, but there is a risk of decommissioning
  • It is necessary to confirm the risk of stock loss and deduction.
  • Beginners are basic for long-term, distributed and integrated

First of all, it is important to create a mechanism that can start with a small amount and continue for a long time.

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.