Transcript Celebdaq Academy Lesson Plan

How do we make a return from dividends?
Enterprise Lesson 3
Reaping the dividends
Aim: to understand what dividends are
and how to make a return from them.
Lesson 3: Reaping the dividends
1
For starters…
> How well do you think your shares did last
week? Did your investment pay off?
> Extension: evaluate last week’s investments.
Check your Portfolio and Mini-league. What did
you do well? What could you have done better?
Lesson 3: Reaping the dividends
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By the end of today, you will be able to
• explain dividends, potential dividends,
and the dividend yield.
• calculate the dividend yield.
• come up with a trading strategy based on
earning dividends.
Lesson 3: Reaping the dividends
3
Remember your mission
To
as much
muchmoney
money
possible
Tomake
make as
asas
possible
by by
investing imaginary
imaginary money
inin
celebrity
shares.
investing
money
celebrity
shares.
• This week we’ll learn one way to accomplish your mission:
to make the biggest return possible from dividends.
? What are dividends? How is the dividend of a celebrity set?
Lesson 3: Reaping the dividends
4
Dividends?
• Remember, dividends are paid out every Friday on
each share you own. A few tips:
– The more press coverage the celebrity receives, the higher the
dividend.
– The more shares you own in a celebrity, the higher the
dividend payout you’ll receive from that celebrity.
– The ideal celebrity offers a high dividend at a low price.
Lesson 3: Reaping the dividends
5
Reaping the dividends
• The relationship between dividend and price is
called the dividend yield.
Dividend yield = dividend ÷ price × 100
? Do you think investors prefer high or low dividend
yields? Why?
• A useful hint: find out about potential dividends!
Lesson 3: Reaping the dividends
6
Extension activity/homework
> Use bbc.co.uk/celebdaq to look up this
week’s hot celebrities. Complete the
worksheet by looking at each celeb’s
profile. This will help you make a return
from dividends.
Lesson 3: Reaping the dividends
7
Invest!
> Use your dividend yield table to choose
the 3 celebrities that you expect will
bring in the biggest dividend payments
during the week.
Lesson 3: Reaping the dividends
8
Celebwork
Bring in your favourite press
source of celebrity news next
lesson (and, of course, don’t
forget to follow the news).
Lesson 3: Reaping the dividends
9