The dividend yield is a financial ratio between the stock and share price, and indicates the percentage of a company's annual dividends relative to its share price. A high dividend yield means the company pays a significant dividend compared to its stock price.

A payout ratio is a metric that shows the proportion of earnings a company pays its shareholders in the form of dividends. If a company's payout ratio is 80%, for example, it means that 80% of its profits are given out as dividends, with the remaining 20% retained for reinvestment or to cover debt.

Franked dividends are specific to Australian dividend stocks. They come with franking credits, which are tax credits that can help prevent the double taxation of dividends. These credits can be used to offset income tax owed consistent dividends made by the shareholder.

While high dividend yields can be attractive, they may also indicate that the company is facing difficulties. It's essential to look beyond the dividend yield and consider other factors such as the payout ratio, the company's financial health, and the sustainability of its dividend payments.

When choosing the best ASX dividend shares, consider factors such as dividend yield, payout ratio, the company's financial health, its history of dividend payments, future performance, market capitalization, and your own investment strategy and financial situation.

Dividends are typically paid semi-annually, although some companies may also offer special or interim dividends. The specific payment date and dividend amounts are usually announced by the company beforehand.

A good portfolio for making 1,000 dollars monthly in dividend payments. Investing in stocks is essential to ensuring that you have a minimum 3.32% portfolio size in dividend-paying stocks. Depending on the dividend yields on each stock 30 of these will generate about $12k per annum.

Dividends impact stock prices significantly, especially in Australia where Australian shares are sought after for high dividends. In sectors like the energy sector, dividend-paying companies are prevalent. Investors favour such stocks, which can drive up prices. However, changes in payout ratios or concerns over rising interest rates can cause fluctuations.

Companies pay dividends to reward shareholders and attract investors, crucial in Australia's market known for high dividends. Dividends reflect financial strength, boosting investor confidence. But companies must balance payouts with reinvestment, especially amid rising interest rates.

Blue-chip shares with high dividend yields on the ASX, like those in the energy sector, offer high dividends. Companies such as Woodside Petroleum (ASX: WPL) and Santos Limited (ASX: STO) are favoured. However, investors must consider factors like payout ratios and the impact of rising interest rates for sustainable returns.