How to read Google Finance data on dividends
Looking at following stock. In the details where it says Div/yeild 0.20/3.90
As far as I understand 0.20 cents is amount paid per share. How does the yield of 3.90 gets calculated?
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However, you have to remember that not all dividends are paid quarterly. For example one stock I recently purchased has a price of .03 and the Div/yield = 0.08/11.9 .
$.08 * 4 = [CO].32 which is only 3.9% (But this stock pays monthly dividends).
$.08 * 12 = [CO].96 which is 11.9 %.
So over the course of a year assuming the stock price and the dividends didn't change you would make 11.9%
The dividend is for a quarter of the year, three months. 80 cents is 3.9% of .51. Presumably the Div/yield changes as the stock price changes. On Yahoo, they specify that the yield is based on a particular stated date. So it's only the exact number if the stock trades at the price on that date.
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