My First Cash Dividend in Stocks

I just started my stock market journey two months ago. I've been enjoying it so far. While there were some instances that I was losing money, I remained optimistic that things will go well soon. As I've previously mentioned, I'm into a long-term investment. I look at it as those bad days will be overturned by good days.

Anyway, one of the good news for stock investors is receiving their cash dividends. Yesterday, I received an email from BDO Nomura, my trading platform, of a transaction in my account. I was quite surprised because I was busy these past few days and I haven't had any recent transactions with my account. Upon checking, it was a credit memo for a cash dividend.

For newbies like me, Investopedia defines cash dividends as "money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors, and they are taxable as income to the recipients."

To be honest, I'm completely clueless as to how cash dividends work. So, I managed to google some information about it. Apparently, these cash dividends are as good as cash and are recommended to be reinvested for maximum gains.

I checked my BDO Nomura Settlement Account as per their FAQ, this is where my cash dividends will be sent to. Voila!

The cash dividends came from Jollibee Food Corporation. As you may have known, the company is currently in hot water as the National Privacy Commission is ordering them to stop their online delivery platform due to critical vulnerabilities found in their system which could lead to data breach.

I'm not a professional on this but based on my amateur analysis, Jollibee managed to regain its value after falling to PhP279 on May 10 and closing it to PhP285 today, May 11. This data came from MarketWatch. I still have no reason to pull out my money.

As a kuripot, I'm very much particular about the companies that I'm associating myself with in the stock market. For me, Jollibee is still a good catch. Recent news about them does not seem to affect their stock market performance.