Tag Archive: stock dividends

Top Video Game Stocks

by Naypong

I’m sure you’ve seen other sites telling you what they believe the top 5 video game stocks are in the market today. I’ve done my own research and I believe the companies below are some of the best to invest in. And I am speaking from an unbiased point of view, meaning, I have no financial interest in any of the companies. Even though I invest in the stock market, I don’t own stocks from any companies that create video games or consoles. Of course I’m speaking for the “now,” things may change in the future. I’m not a big investor so I can’t invest in everything I research. But one day, I hope to own a few of these stocks, but in the meantime, let me share some of what I’ve learned about these 5 Video Game companies.

Before I start talking about these stocks, I would like to point out that they are not in any specific order, just in the order that I’m speaking about them. And these 5 video game stocks are not the only VG Stocks out there. There are plenty others, both publicly and privately traded. So first up is, Microsoft.

Microsoft Corporation (MSFT)

Microsoft, with ticker symbol MSFT, is one of the largest companies in the world. Years ago, the name “Microsoft” wouldn’t trigger “video games” in anyone’s mind. But over the past decade, Microsoft has pushed its way into the Video Game Industry and has taken over a good portion of the entire video game market with their Xbox and Xbox 360 console. We can most definitely expect more consoles by Microsoft in the future, whether they are portable systems or a new generation of the Xbox.

Microsoft Stocks have been very steady over the past 2 years. The low level of volatility shows just how stable Microsoft is as a company. Microsoft hasn’t changed much over the past 2 years in price, so why invest in them? One word, Dividends. If you don’t know what dividends are, I recommend you read up on the post titled “What are Stock Dividends?” right here on Stocksicity.

Microsoft’s Dividend has also been pretty steady. In the past 2 years, Dividends from Microsoft has actually risen about 12 cents per share a year. This is partly due to all the innovations Microsoft has done, including their developments in the Video Game Sector. Their current dividend is set at $0.64 per share, or a 2.5% Yield. Microsoft Stocks are cheap, under $30 at an average over the past 2 years. The Dividend payouts have been steady and stable and is a great investment because of the dividend. And of course, you could reap the benefits of what Microsoft does in the Video Game, Computers, and other technology sectors of the market.

Take-Two Interactive Software (TTWO)

Take-Two Interactive Software, with ticker symbol TTWO, has been around for a while. They have created blockbuster games like the Civilization Series, Grand Theft Auto Games, Borderlands, Bioshock, NBA 2k Series, Midnight Club Series, Do I need to keep going?

Take-Two Interactive has created some of the greatest games in our time and they will continue to create awesome games in the future. This is why TTWO is a great investment. Currently, Take-Two Interactive costs $12.50 per share. It is near its 52 week low of $9.23. It’s 52 week high is over $17.50. I always recommend buying low and selling high and now, Take-Two Interactive is in the perfect place for investors to buy low and possibly sell high in the near future.

Unlike Microsoft, Take-Two doesn’t offer a dividend. Although it used to in the past, it stopped due to the economic meltdown we experienced a few years ago. But I’m sure if the gaming industry starts to boom again, they will start their dividends again. And the holidays are coming up in just a few months, and Take-Two Interactive has always spiked during the Thanksgiving and Christmas breaks so now would be a great time to invest. If I had money to invest at this moment, Take-Two Interactive would be near the top of my list.

Activision Blizzard Inc. (ATVI)

The most played MMORPG (Massively Multiplayer Online Role Playing Game) is World of Warcraft. Activision Blizzard launched World of Warcraft (also known as just WoW) years ago and it took off like a rocket. The game has given Activision the capital to become one of the largest Video Game Companies in the world. Like Microsoft, Activision has been very steady in the stock market. It has been above $10 and below $13 for at least the past 2 years. This stability gives investors reliability that it will continue to stay steady.

So why invest in a company that doesn’t look like it’ll spike in price? The same reason you would invest in Microsoft. Activision Blizzard gives out dividends just like Microsoft. They pay $0.17 per share a year, or a 1.5% yield. This may not be much but the price of ATVI Stocks is cheap compared to other stocks which allows you to buy more stocks so that your dividend payouts are much higher. As long as World of Warcraft (and the many other games created by Activision) dominates the market, ATVI isn’t going anywhere, that’s why investing in this company is a smart idea.

THQ Inc. (THQI)

THQ Inc is a great investment. But recently you may have noticed that THQ has had financial issues, mostly due to lower sales. This isn’t the first time THQ has had issues. THQ is a great company who has created many games, most notably the World Wrestling Entertainment’s (WWE) Smackdown Games (more recently Smackdown Vs. Raw). I believe that THQ will bounce back soon because the holidays are coming and the holidays always mean a great time for the video game industry.

Currently, the price per share of THQ is $1.80. It is just 9 cents above its 52 week low which makes it a great investment. Many stocks that approach their 52 week lows bounce back very quickly because investors use the opportunity to buy a stock low to sell high in the future. What makes it more attractive is that this stock is less risky than many other companies. If there is loss, the loss is very little compared to a company that goes from $100 per share to $10. I definitely don’t see that happening for THQ and that’s why I believe that THQ would be a great investment right now.

Majesco Entertainment Company (COOL)

And finally, the last stock on the list is COOL, well actually, COOL is their Ticker symbol, and their name is Majesco Entertainment Company. The one thing I love about this company is the ticker symbol, it’s definitely a cool one. Majesco isn’t as well known as the other four companies, nonetheless, it has made a big impact in the video game sector of the stock market. I have kept my eye on this stock for some time but I never got around to investing. Earlier this year, the price per share of Majesco was just $0.49. And at one point, it went up and kept going up. It reached its 52 week high of $4.53 per share back in June. If I had invested when it was pretty much a penny stock, I would have made 10 times my money. Although I regret not investing when it was low, I am kind of happy that I didn’t when it was going up.

What I’ve learned about this stock is that it’s very volatile. It has gone up and down drastically over the past few months so it is very volatile. Currently, the stock is priced at $2.38 per share. It dropped below $2 per share during the Early August meltdown but it has bounced back up. Even though the stock is very volatile, it is much easier to make money from a volatile stock than a steady stock if you can predict how a stock will act.

If you’re looking for something very volatile to invest in and if you want to take the risk to see if you can profit off a gaming company, then Majesco Entertainment Company is a company you should look into. There is a lot of potential for making a lot of money with this company, you just have to do it right.

 

 

These are the top 5 video game stocks on my list. Your list may differ or you may not have a list at all. But before you invest in any of the stocks mentioned, be sure to do your own research to really know what you’re getting into. Stocks can be heavily influenced by how the rest of the stock market is doing as well as how the consumers feel. Everything can change in the blink of an eye.

If you are an investor, do you own any shares of the companies I’ve mentioned today? If you don’t own any shares, do you plan to purchase any of these stocks? Share your feelings by commenting!

What are Stock Dividends?

Dividend Desk

Business by worradmu

A company pays dividends to investors as an incentive for investing with their company. This also attracts new investors, both individuals and other companies looking for a return on their investments. So what is a stock dividend? Our Stocks Vocabulary section states that a Stock Dividend “is a portion of a company’s profit given back to investors in either cash or stock value. Dividends are given out monthly, quarterly, semi-annually, and annually.” These are the most common schedules. Companies may not have dividend schedules at all, they may give out dividends only when they feel they don’t have any other use for the profits. And generally, companies will announce their dividends months before they actually give them out. They will also announce an ex-dividend date, also known as just an ex-date, and tied to it is the record date.

The ex-date is the first day a stock’s dividend is actually due. This means that if you want to be paid the next dividend by a company, you must purchase the stock before this date. If you purchase the stock on or after the ex-dividend date, you are not entitled to the next dividend payout. Why is that?

When you purchase stocks, they take time to settle. They won’t be recorded immediately. Even though the internet makes it easy for us to invest and buy stocks, it still takes time for purchases and sales to settle, it can take several days in fact. This is where the record date comes into play. Generally, the Record Date is two days after the ex-date. The record date is used by companies to determine which of their stockholders are entitled to their next dividend payout. If your name is not listed in their database or on their list of stock holders during the record date, you will not receive the next Dividend payout, even if you purchased the stock on the ex-date (2 days prior to the record date) because enough time hasn’t passed for your purchase to settle.

Dividends may seem complicated, but once you get used to the process, it’s actually quite simple. And from the above, you can deduct what will happen if you sell your stock on the ex-date. If you sell your stock on the ex-dividend date, you will receive the next dividend payout. Why? Well, as mentioned above, it takes time for orders to settle, and if you sell on the ex-date, your sale won’t be settled until after the record date. The company will still see your name on their list during the record date even though you may no longer own the stock and pay you the next dividend. Now if you sell the day before the ex-date, your order will most likely settle by the Record date and you will no longer be eligible to receive the next dividend.

Most company pay their dividends in quarterly schedules, or every 3 months for a total of four times a year. Some companies may have a semi-annual or even annual dividend schedule where they pay every 6 months or just once a year. A few companies also have monthly dividends that they pay at a certain time every month. Whatever the company’s schedule may be, the dividend announced is an annual dividend. For example, if a company announces a dividend of $1 per share, it means that they will pay out a total of $1 per share for the year. So if that company has a quarterly dividend schedule, you will get paid $0.25 per share every 4 months. If the company has a semi-annual schedule, then they will pay $0.50 per share every 6 months. The same goes for any other kind of schedule a company may have.

Companies that give out dividends will announce how much they will pay per share. And using that amount, you can figure out the total Yield of the dividend. The yield is just the  percentage of the dividend paid against the stock price. The value of the yield is far more dynamic than the value of the actual dividend.

For example, let’s say that you own 10 shares of Company Alpha with a worth of $10 per share. Let’s assume that Company A announced that they will pay $1 in dividends for each share per year. That’s a return of 10% and the 10% is the dividend yield.  So why is the yield dynamic? Let’s say 3 months from now, Company Alpha’s stock prices drop to $5 per share but they don’t change the amount they will pay in dividend. The dividend is still $1 per share, but now, the dividend yield is 20%. The amount of money you are getting back per share in dividends hasn’t changed, however the overall value of the stock has along with its dividend yield. The effect is the same if the stock value of Company Alpha rises to $20 per share, the yield at that point would be 5%.

As mentioned earlier in the article, dividends may also be paid out in stock value. Instead of getting cash, the company may give you extra shares of the stock depending on how much you own. Obviously, the more shares you own, the more shares you’ll earn during a dividend payout. This also results in some investors having decimal points in the number of shares they own. This isn’t better or worse than a cash payout. With a stock value payment, you won’t have to worry about paying taxes on your dividend, however, when you sell your stock, you will have to pay the taxes for the value of the share. There are advantages and disadvantages for each kind of payout so one isn’t better than the other.

Companies don’t have to give out dividends. Dividends are generally given out to encourage new investors. Companies that don’t have dividends aren’t necessarily bad, it could just mean that they are using their profits for the growth of their companies. Many companies use profits for Research and Development while others use the profits to invest in other companies to increase the value of their own company.

You shouldn’t only look at dividends when investing. You should also be careful about companies that give out too much dividends. You will come across companies that pay up to 50% of their stock value. It may not always have been a 50% yield, the price of the stock may have just dropped, but this stock is something people would call risky. The dividend would be extremely risky because there is a high chance the the company will either decrease their dividend payout greatly or cut it out altogether as some companies have had to do in the past to cut losses or stay in business. And if you purchased the stock because of its high dividend, you will be disappointed.

Stocks with 20-30% dividend yields are also somewhat risky. Although the risk is far less than a company paying out 50% in dividends, there is a big chance that the company will decrease their dividend amount in order to save the company money. Dividends should be a small factor in deciding what companies to invest with. You may get a bigger profit by investing a company that doesn’t give out any dividends but research shows that the company’s stocks will skyrocket because of a new product they are introducing or because the competition is doing poorly.

If you are looking at a dividend announcement by a company, be sure to really look at it for the essential information before assuming. You should look at how much dividend they are paying per share, what their schedule is, as well as the yield percentage because this can be a big indicator of how well a company may or may not be doing. Another thing to look at is the method of payment, whether it’s cash or sock value. Also be sure to pay attention to when the ex-dividend and record dates are so you don’t miss out on the next dividend payment.