General talks on equities

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date
General talks on equities vikas 06-02-2008
Posted by PeterL on June 2, 2008, 7:23 pm
> > The answer is you don't benefit financially.
>
> Unless it pays dividend - they usually double
>


Aren't dividends usually calculated as a percentage of stock price?

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Posted by joetaxpayer on June 2, 2008, 8:12 pm


PeterL wrote:

>
>>>The answer is you don't benefit financially.
>>
>>Unless it pays dividend - they usually double
>>
>
> Aren't dividends usually calculated as a percentage of stock price?

Well, no. Motorola, for example, shows a 20 cent per year dividend. The
fact that yahoo will do the math for you and say it's 2.1% of the
current price means little.

A $50 stock, upon splitting, may adjust it's dividend from $1 to 50
cents, or announce a bit of increase, and make it 55 or 60. But to jump
it (back) to $1/share after split, I've not seen.

Joe

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Posted by Elle on June 2, 2008, 9:12 pm
> Motorola, for example, shows a 20 cent per year dividend.
> The fact that yahoo will do the math for you and say it's
> 2.1% of the current price means little.

Little caveat for the newbie finance.yahoo users: The
dividend yield
shown can be highly misleading. This is especially so for
stocks that do not pay dividends four times a year. For
example, AIB. It has been paying a dividend twice a year for
some time now, with about 2/3rds paid in the first part of
the year and 1/3 paid in the second part. finance.yahoo's
summary page misleadingly just doubles the most recent
dividend.

Re dividends and splits: I agree with Joetaxpayer. I wonder
if the problem is that "Tex Shalter" was using
finance.yahoo's historical prices page and did not realize
that the dividends shown have already taken into account
splits.

It's best to go to a company's web site and just search for
dividend history.

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Posted by Will Trice on June 2, 2008, 8:19 pm


PeterL wrote:

> Aren't dividends usually calculated as a percentage of stock price?

I think you're confusing 'dividend' and 'yield'.

-Will

william dot trice at ngc dot com

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


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