Dec 8 2008, 01:46 PM
QUOTE(RJdio @ Dec 8 2008, 01:09 PM)
Guys help me understand something.
According to MB2u, Digi has a DY of 10%. And paid 228 cents last FY (before tax - to keep it simple use this number).
Digi shares have a par value of 0.10c.
Now if I had 500 shares, 500 x 0.1 x 228 = 11,400c = $114 <-- I get this in dividends.
Assuming I bought the stock for $22, the yield is $114/ 500*$22 = ~1%
Basicly due to the low par value, the returns are much lower say if the par value was $1.
I guess the par value has to be figured when buying stock based on dividends.. So one needs to be
very carfeful by just going by the dividend yield number.
Am i on the right track ?
Dividend Yield = Cumulative Dividend paid in one financial year divided by the current stock price.According to MB2u, Digi has a DY of 10%. And paid 228 cents last FY (before tax - to keep it simple use this number).
Digi shares have a par value of 0.10c.
Now if I had 500 shares, 500 x 0.1 x 228 = 11,400c = $114 <-- I get this in dividends.
Assuming I bought the stock for $22, the yield is $114/ 500*$22 = ~1%
Basicly due to the low par value, the returns are much lower say if the par value was $1.
I guess the par value has to be figured when buying stock based on dividends.. So one needs to be
very carfeful by just going by the dividend yield number.
Am i on the right track ?
For example on Friday 5th Dec 2008. DIGI D.Y = 10.6% and closed at RM 21.50
Annual Div = RM 21.50 x (10.6/100) = RM 2.28 per share.
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