What would it be like if, in addition to consuming a product, you were a partner in the company that produces that material? Have you ever thought that being an Apple partner would be as good as having an iPhone? Or, if in addition to consuming Nestlé products, you were a Nestlé partner?
The person who invests in the stock market owns a smaller part of that company. Therefore, she is entitled to some types of gain that vary according to company policy. Check out four ways to make money with stocks below.
1) Valuation of the action
For example, let’s say that three years ago you bought a share in a company for R$20. After that period, you chose to sell that paper, which then became worth R$45.
In this example, your profit was BRL 25 — that is, more than double your initial invested amount.
The bonus is the remuneration that the investor receives when the company’s capital increases. This bonus is proportional to the number of shares each shareholder has in their investment portfolio.
It is worth mentioning that the investor can receive this bonus either in the form of more shares or in cash.
Dividends are earnings that correspond to a part of the profits that is distributed among the shareholders, as part of the result that the company is obliged to distribute to the partners.
Each investor receives a volume of dividends proportional to the number of shares he has. Noting that dividends are exempt from Income Tax.
4) Interest on equity (JCP)
Interest on Equity (JCP) is similar to dividends, but has a slightly more technical explanation.
Some companies do not distribute all the profit for the period. They choose to retain a part of it as a reserve.
Interest is levied on this profit reserve, which is understood as remuneration on equity. Such interest may be paid individually to the partners or shareholders.
As it is recorded in a different way, there is a tax on JCP.
In these last two cases —dividends and interest on equity—, it is worth considering the issue of payment frequency. This period depends on the policy of each company, with quarterly, half-yearly or even annual cases.
But not all companies pay dividends and some pay higher or lower percentages. The explanation for this difference refers to the business structure and the company’s operating segment.
For example, companies that need to invest heavily in research and development tend to pay less dividends, as they need to use this money to invest in these aspects. However, the stock price in these cases is generally higher when a new product is launched on the market.
The banking sector, on the other hand, tends to pay more dividends, since it does not have great needs to invest in research and development.
As with any financial investment, investing in stocks also exposes you to risks — although even the well-known savings account has limited security.
In other words, the risk of an investment in stocks should not be seen as a problem, as long as the person is fully aware of it and is prepared to make the best possible management.
In the investment world, there are products with varying degrees of return uncertainty. They also change according to the application period, investor profile and experience.
You can invest in stocks through the home broker, a specific platform available in the application or via the website of financial investment institutions, always observing if there is a charge of fees.
At these banks and brokerages you will also find some free stock valuation reports and suggested portfolios, as well as links to YouTube videos and podcasts with market and company analysis to support your decision making.