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Dividends: What They Are and How They Work
https://www.sofi.com/learn/investing/what-is-a-dividend/
A dividend is when a company periodically gives its shareholders a payment in cash, additional shares of stock, or property. The size of that dividend payment depends on the company’s dividend yield and how many shares you own. Not all companies pay dividends, but many investors look to buy stock in companies that pay them […]
Value-Weighted Index: Explanation and How to Calculate
https://www.sofi.com/learn/content/value-weighted-index/
Value weighted indexes, also called cap-weighted indexes, may be used by investors to gauge the performance of various sectors of the stock market. Indexes effectively measure a specific portion or subset of the market, which can help investors get a sense of the market’s performance. Some of the most commonly known and used value weighted […]
How to Calculate the Debt-to-Equity Ratio
https://www.sofi.com/learn/content/calculating-debt-to-equity-ratio/
The debt-to-equity ratio (D/E) is one of many financial metrics that helps investors determine potential risks when looking to invest in certain stocks. Companies also use debt, also known as leverage, to help them accomplish business goals and finance operating costs. Calculating a company’s debt-to-income ratio requires a relatively simple formula investors can use on […]
How Is Income-Driven Repayment Calculated?
https://www.sofi.com/learn/content/calculating-income-based-repayment/
After graduation and your six-month federal student loan grace period, it’ll be time to start paying your dues. If you are on the Standard Repayment Plan, you’ll pay at least $50 a month for 10 years. But there are other ways to pay back your student loans: through income-driven repayment plans. Not all of these […]
How to Calculate a Dividend Payout Ratio
https://www.sofi.com/learn/content/how-to-calculate-dividend-payout/
The dividend payout ratio is the ratio of total dividends paid to shareholders relative to the net income of the company. Investors can use the dividend payout formula to gauge what fraction of a company’s net income they could receive in the form of dividends. While a company will want to retain some earnings to […]