Most people chase big dividends…
But they ignore what truly matters:
What are you actually earning?
Today, I want to bring this confusion to order
Dividend = What the company pays
Dividend Yield = What YOU earn
Here’s the formula:
Dividend Yield = Dividend per Share ÷ Share Price
Simple Example:
Dividend = Ksh 5
Share Price = Ksh 50
Your return = 10%
Now look at this:
Company A pays Ksh 20 dividend
But share price is Ksh 400
Your return = 5%
Bigger dividend… but lower return
Now, here is the mistake most people make
They see:
“This company pays high dividends”
And assume:
“This is a good investment”
No.
A company can pay a huge dividend…
But if the share price is too high…
Your return per shilling invested is small
I Want You to Flip Your Thinking:
Some companies pay:
Relatively good dividends, but their share price is also low.
This will give you much higher returns
But Don’t Fall Into This Trap
High Yield Doesn’t Mean Safe
Some stocks may show 10% – 20% yield
But the price is falling.
Ask yourself:
Is the company stable?
Are profits growing?
Is the dividend sustainable?
A declining company can still show a high yield
That is a trap!
Here is another important factor to consider:
Consistency Beats Size
This is where real investors win.
A company that pays:
Ksh 3 → 4 → 5 → 6
Is far more powerful than:
Ksh 10 → 0 → 8 → 2
Always know that the past patterns predict future signals.
A company with good dividends history is a good candidate for future good payouts
Here Is Why?
Because:
You are building income, not chasing hype
You want:
Predictable cashflow
Growing income
Peace of mind
Finally:
Dividend investing is not about:
The biggest payout
It is about:
The best return
The most consistency
The strongest companies
Always Remember:
“Dividend tells you what the company gives…
Yield tells you what you earn.”
Now Go Hunt for Dividend-Paying Stocks
The opportunity is right in front of you.
Today, getting into stock investing is no longer complicated.
You can invest directly through Ziidi Trader right on your M-PESA app.
No CDS account hassle
No brokers involved
No paperwork headaches
This is one of the simplest and most efficient platforms for any beginner to start.
You have no excuse creating passive cashflow from dividends
Start building a stock portfolio that pays you consistently—even when you are not working.
But always remember:
Note: Safaricom does not endorse any shares, and Ziidi Trader only provides access to the market.
Alex Mwangi |The Cent Warrior| WhatsApp 0703472299
