What the Dividend Payout Ratio Tells You Publicly traded companies that earn profits may choose to distribute some of those profits to shareholders in the form of dividends. These payments are equally distributed to investors of a given class and must be approved by the company’s Board of Directors. The DPR expresses what percentage of earnings the company paid out to its owners or shareholders. Any money the company doesn’t pay out typically goes to pay down the firm’s debt or reinvest in key operations....

Learn about the types of tire coverage available and exclusions to understand whether tire insurance could be the right fit for you. Types of Tire Coverage Tires are normally not turned in for claims in comprehensive or collision coverage, due to the cost of a new tire often being less than the comprehensive deductible of your auto insurance policy. When buying tire insurance, this is not a part of your auto insurance policy....

However, using a HELOC to pay off a mortgage is usually not a good idea—and we’ll explain why What Is a HELOC or Home Equity Line of Credit? A HELOC, the nickname for a home equity line of credit, is a second mortgage in the form of a line of credit. Equity is the amount your property is currently worth, minus the mortgage balance amount. Unlike a home equity loan, HELOCs usually have adjustable interest rates....

This weekly credit card news roundup contains all the things you should know about the cards in your wallet, other available offers, and new product announcements or reports that made us pause while refilling our coffee mug for the umpteenth time. What’s the Lowdown? Here’s what caught our attention between Jan. 8 and Jan. 14, 2021: Another Credit Card Is Joining the Cryptocurrency Party Cryptocurrency management company Gemini announced it will debut its own cryptocurrency rewards credit card later this year....

If your business owns real estate, you must pay property tax on this property. In the same way, as individuals pay property tax on the assessed value of their homes, businesses pay property tax on the assessed value of their property, including real estate. Property taxes are called ad valorem (value) taxes because they are calculated on the value of the property. The value of a property for property tax purposes is not the same as fair market value, which is the price in a transaction between a willing buyer and seller with no compulsion to buy and each having all the facts about the property....

These formulas can help you be a more effective investor by allowing you to measure a company’s: ProfitabilityStrengthGrowthEfficiencyQuality Although we delve into the formulas in more detail below, let’s consider an example in which an investor wants to measure how much profit margin a company generated for each dollar of revenue earned from sales. We would divide the company’s revenue by profit using the net profit margin formula. If the company had $1,000,000 in revenue and $200,000 in profit, its net profit margin would be 20%, because ($1,000,000 revenue / $200,000 profit = ....

Initial claims: When a person loses their job, they file an initial claim with their state unemployment office to determine their eligibility.Continued claims: Once a worker has filed a claim and experienced at least one week of unemployment, they file continued claims to receive subsequent unemployment benefits. The number of initial jobless claims is considered a leading economic indicator, meaning it can be used to predict economic trends. For example, in March 2020, the number of jobless claims skyrocketed as the pandemic shuttered many businesses deemed non-essential....

Whether zero, one, or more mortgage points make sense for you and your mortgage loan depends on a number of factors, including how long you plan to keep your mortgage loan. In this guide, learn how to evaluate mortgage points and decide if they are the best option for your mortgage loan. Definition and Example of Mortgage Points Mortgage points are a way to prepay interest on your mortgage loan in exchange for a reduction in your interest rate....

Learn what you can expect for costs in the baby’s first year, along with the average costs of raising a child. One-Time Expenses in the Baby’s First Year When you are welcoming your first baby, there are many unknowns. Among other concerns, you may be wondering what you need to buy and ultimately what it will cost to become a parent. The average annual costs for raising a child vary considerably depending on the child’s age as well as your household income....

Disadvantages of 529 Plans By June 2022, total investments in 529 college savings plans had reached $412.5 billion, with the average account balance reaching $25,903. While many people choose to save money in a 529 plan, those who are debating this strategy may want to first review the disadvantages. Investment Options May Be Limited A 529 plan is not the same as a traditional savings account. Rather than simply earning interest, money added to a 529 plan can be invested, typically in mutual funds, although some plans may also offer exchange-traded funds (ETFs) or individual stocks....

There are two main causes of inflation: demand-pull and cost-push. Both are responsible for a general rise in prices in an economy, but each works differently to put pressure on prices. Demand-pull conditions occur when demand from consumers pulls prices up, while cost-push occurs when supply costs force prices higher. Some sources cite a third cause of inflation: expansion of the money supply. However, the Federal Reserve explains that the relationship of money supply to inflation has decreased over time, and is not a separate cause of its own....

An unfunded liability is a debt that does not have existing or projected assets to cover it. The entity the debt belongs to does not have funds to pay it. For example, a company might have a pension plan in place in which each employee is due to be paid $35,000 per year in retirement. If the company has struggled financially and failed to fund its pension fund, it wouldn’t have the money to meet the expected obligations for the retiring employees in the near future....

The concept of de minimis is important in employee benefits, capital gains taxes, and other business tax areas. A small benefit might not be subject to income tax. The amount can vary depending on circumstances. What Does De Minimis Mean for Employee Benefits? The Internal Revenue Service says a de minimis benefit is “one for which, considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical....

That may make it very tempting to go without health care insurance, especially if you’re just barely covering other basic necessities, or you’re young and healthy and don’t think you need much medical care. Having health insurance in the U.S. is not legally mandated, though some states still impose penalties for certain residents who forego coverage. But health insurance is important enough to prioritize it right after shelter, food, and transportation to a job, if you have any way to afford it....

Learn what can go wrong if you write a check for more than you have in your bank account. And if you already wrote a check with insufficient funds, you’ll learn what steps to take next. What Is a Bad Check? A bad check is a payment that a check writer’s bank does not approve. The bank might reject a payment because there is not enough money in the account, the check writer requested a stop payment on the check, or for other reasons....

Definition and Examples of a Bullet CD Strategy A bullet CD strategy involves buying several certificates of deposit that will mature at roughly the same time. You’d typically buy these CDs over the course of several years, but you structure them so that all your money becomes available at the same time. It would be a bullet CD strategy if you bought a three-year CD one year, a two-year CD the next year, and a one-year CD the next year....

For example, Steve the investor anticipates ABC Company to have a flat to slowly rising price trend. To profit from this, he decides to purchase options contracts following a calendar spread strategy. ABC Company is currently trading at $100 per share. Steve purchases a longer-term six-month call option with a strike price of $103, while simultaneously selling a shorter-term two-month call option with a strike price of $103. Steve’s maximum gain is unlimited after the short-term option expires....

A successful lawsuit would legally require that the defendant stop and that they potentially pay damages. But the letter doesn’t necessarily guarantee the recipient can be sued. It’s a heads-up warning that they might be. This type of letter is commonly associated with copyright violations. An artist might have rights to a certain song they created, prohibiting anyone else from recording it without compensating the original artist/creator of the work....

But how do you go about getting an LLC set up? You’ll need to file an application document with your state’s Secretary of State. Most states require articles of organization. Some states require an LLC application document with a different name: Certificate of Organization: Connecticut, Idaho, Iowa, Massachusetts, Pennsylvania, UtahCertificate of Formation: Alabama, Delaware, Maine, Mississippi, New Hampshire, New Jersey, Texas, Washington All of these documents are similar and they ask for the same type of information....

The idea of chartered banks came about in 1863 by President Abraham Lincoln and his Treasury Secretary, Salmon P. Chase. They enacted the National Currency Act, which established the Office of the Comptroller of the Currency (OCC) and authorized it to charter national banks. In 1864, the National Currency Act became known as the National Bank Act, which provides a national banking system. How a Chartered Bank Works In the U....