Trust No One - Especially Tigers Asking Trick Questions
Quote:
Originally Posted by
banter
...I don't trust Yahoo's data; also, they fail to adjust properly for dividends that lack imputation credits. NZ50 index has the same (IMO faulty) approach.
Bottom line for me is use adjusted prices, do the adjustment manually and take 28% off any non-imputed dividend adjustments.
I hope that you are not simply subtracting the dividend amount from prior share prices, consider the $1 share that has paid out more than a $1 of historical dividends.
Adjusting for the lack of imputation credits is incorrect.
A 5cps dividend costs the company 5cps per share independent of whether it all goes to the shareholder directly or is split between the shareholder and the tax man.
[Tricky / Trick Questions follow]
But how do you account for the discount on Dividend Re-Investment Plans?
and
how do you account for the supplementary dividend paid to overseas shareholders?
Best Wishes
Paper Tiger