How Dividend Is Calculated ?????

Discussion in 'Equities' started by sahil_investorking, Jul 1, 2007.

  1. sahil_investorking

    sahil_investorking New Member

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    Hi Guys,

    Can any one please help me to explain how dividend is calculated ? also try to explain with giving example.

    Also want to know dividend rate is good for fave value of Rs. 10 or Rs. 2 ??

    Thank You,

    Sahil
     
  2. koshyssj

    koshyssj Member

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    Dividend
    Corporations may pay out part of their earnings as dividends to you and other shareholders as a return on your investment. Share dividends, which are generally paid yearly, are in the form of cash.

    Dividend payout ratio
    You can calculate a dividend payout ratio by dividing the dividend a company pays per share by the company's earnings per share.

    Dividend yield
    If you own dividend-paying shares, you figure the current dividend yield on your investment by dividing the dividend being paid on each share by the share's current market price. Dividend yield, which increases as the price per share drops and drops as the share price increases, does not tell you what you're earning based on your original investment or the income you can expect to earn in the future. However, some investors seeking current income or following a particular investment strategy look for high-yielding shares.
     
  3. budhah1

    budhah1 New Member

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    Actually most of the companies that I have paying dividends are quaterly,, some will pay monthly,,,, The dividend comes off the price of the stock, so if you have say a $40.00 stock and it pays .87 quaterly dividend. then the day after earnings dividend (exdividend date) the stock will open up at $39.13. A lot of platforms will show it as opening up lower, and sometimes it will fill the dividend withing a few sessions... The company says it is loosing money when paying dividends. but I don't see how, as it comes from the price of my stock.

    When a company continues to pay higher dividneds it is good to own it.. but when some cut their dividend, sell the damn thing,,, look at FBR

    Look at SFI and AEE plus some others.. Yahoo scanner can help you find paying companies. and the rate of return.

    Budhah
     
  4. diosys

    diosys Well-Known Member

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    Dude See....

    Suppose the Face value of a share is 10 and the dividend declared is 30% then that translates to 10*30% i.e. 3 Rs. on the same hand if the FV is 2 then 30% would mean 60 paisa....

    Therefore just do not see what is the dividend % see also the face value of the share....
     

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