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Junior Member
 dividends yield + how to calculate
I am trying to work out how people evaluate a companies history of dividends paid to shareholders. As I currently looking to buy some high paying dividend shares.
I am in my early stages of research, so comments/advice welcome.
Below is one method I am thinking of using but I am not sure how good the method is or how accurate the data is.
If I look a random one of these companies on the NZX, and there dividends history, I am trying to work out what my return would be if I had invested 50K
Company Name
(Click on name to
go to their website) |
Share Symbol |
Dividend
Re-
investment
Program |
Type of Business |
Dividend History |
Dividends
per share
last year
in NZD |
Dividend
yield
% |
Share
Price
History
|
Current
Share
Price
NZD |
Important
Not |
So am i right in saying that $50K investment would get me 52,631 shares (50,000/0.95 )and that would have paid out a share of $0.045 per share, so I would have got $2,368 dividend (50000/0.95)*0.045), which gives me my 4.74 yield which is gross?
I understand that this is an instance in time, and that someone could have acquired the shares over time and at different prices, but just for this example am I usingas the right approach?
How does one try and buy high dividend yield shares? Because as I understand it the comapany might pay dividends and sometimes it might not for its own reasons. Or is this just the name of the game?
Appreciate anyone else methods/thoughts on this.
tks
PS, Anyone know a good way of pasting in tables to the forum so it comes out tidier more aligned than the table above?
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 Originally Posted by AppleCrumble
I am trying to work out how people evaluate a companies history of dividends paid to shareholders. As I currently looking to buy some high paying dividend shares.
I am in my early stages of research, so comments/advice welcome.
Below is one method I am thinking of using but I am not sure how good the method is or how accurate the data is.
If I look a random one of these companies on the NZX, and there dividends history, I am trying to work out what my return would be if I had invested 50K
Company Name
(Click on name to
go to their website) |
Share Symbol |
Dividend
Re-
investment
Program |
Type of Business |
Dividend History |
Dividends
per share
last year
in NZD |
Dividend
yield
% |
Share
Price
History
|
Current
Share
Price
NZD |
Important
Not |
So am i right in saying that $50K investment would get me 52,631 shares (50,000/0.95 )and that would have paid out a share of $0.045 per share, so I would have got $2,368 dividend (50000/0.95)*0.045), which gives me my 4.74 yield which is gross?
I understand that this is an instance in time, and that someone could have acquired the shares over time and at different prices, but just for this example am I usingas the right approach?
How does one try and buy high dividend yield shares? Because as I understand it the comapany might pay dividends and sometimes it might not for its own reasons. Or is this just the name of the game?
Appreciate anyone else methods/thoughts on this.
tks
PS, Anyone know a good way of pasting in tables to the forum so it comes out tidier more aligned than the table above?
Why not use this site?
http://www.dividendyield.co.nz/
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I think Mr Crumple has used the site Kiora. http://www.dividendyield.co.nz/hightolowdividend.php
Yes you are right Mr Crumble with your workings - as the site says this is based on the previous year(s) pay outs and not future dividends.
You will notice the site is updated daily and therefore the yield will change with the share price and/or until the company pays out a differing amount.
There are no guarantees in life (except death and taxes, not necessarily in that order!), so base your purchases on yours (and others) research on whether 1. dividends at present levels will continue or increase,
2. the share price will stay around the same or grow as well.
No point buying a high dividend yield company only to see its share price tumble (then the pay out will most likely as well) and therefore the yield offsets, if you are lucky, the decline in the value of the shares - a simple example only
Last edited by Jay; 06-11-2015 at 08:23 AM.
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Hi, the data is accurate as far as I am aware but the methods you use to evaluate the data will be dependant on your individual methodology. the SP is updated daily and is reflecting current situation at that particular moment in time and assuming the future dividends are the same as pointed out in previous replies. When I look at dividend producers I look for some track record of dividends...so the longer they have been doing it and the level can be see in the "dividend history" link. As the SP drops (assuming future dividend remains same) your yield increases. This whole dynamic is where you have to look at big picture, such as why is SP dropping, whats going on with company etc. etc. etc. Future is unknown but the more history you have can help with decision making. DYOR and develop your own methods and test them over a period of time is the best way.
Originally Posted by AppleCrumble
I am trying to work out how people evaluate a companies history of dividends paid to shareholders. As I currently looking to buy some high paying dividend shares.
I am in my early stages of research, so comments/advice welcome.
Below is one method I am thinking of using but I am not sure how good the method is or how accurate the data is.
If I look a random one of these companies on the NZX, and there dividends history, I am trying to work out what my return would be if I had invested 50K
Company Name
(Click on name to
go to their website) |
Share Symbol |
Dividend
Re-
investment
Program |
Type of Business |
Dividend History |
Dividends
per share
last year
in NZD |
Dividend
yield
% |
Share
Price
History
|
Current
Share
Price
NZD |
Important
Not |
So am i right in saying that $50K investment would get me 52,631 shares (50,000/0.95 )and that would have paid out a share of $0.045 per share, so I would have got $2,368 dividend (50000/0.95)*0.045), which gives me my 4.74 yield which is gross?
I understand that this is an instance in time, and that someone could have acquired the shares over time and at different prices, but just for this example am I usingas the right approach?
How does one try and buy high dividend yield shares? Because as I understand it the comapany might pay dividends and sometimes it might not for its own reasons. Or is this just the name of the game?
Appreciate anyone else methods/thoughts on this.
tks
PS, Anyone know a good way of pasting in tables to the forum so it comes out tidier more aligned than the table above?
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Apple the yield in your example is actually a net yield. Infact AUG have paid out 1.25c in each of the last 4 quarters for a total of 5c.
Therefore 5/97 is 5.25% net yield on cost.
Some of it is excluded income due PIE status the balance is taxed(imputation and RWT of 28%) to give you the 5c net. As it is a PIE then is not required for your tax return unless your tax rate is less than he 28% marginal rate. If that is the case then it is advantageous to do so to reclaim some of that excess tax.
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