Companies like to increase dividends (possibly by 10%). So in a bad year they may still icrease dividends using reserves. Usually a dividend is covered by earnings (say 2x or 3x). You should look at dividend cover.
Part 1
you bought 10 shares at 10$ per share so total of $100 the dividend yield , normally declared annually, is 5% or actual dollar amount of $5
year two the value of the stock went up to 200$ and I'll just assume they kept the dividend the same at $5 so now you're getting 5$/200 or the yield has dropped from 5% to 2.5%.
The dividend is paid per share so again if its 5$ per share you'll be getting $500 for the 100 shares you own.
If it dropped to 3% you'll get $300.
Dividends normally are declared annually and are a function of how well the company is doing with cash flow and profit so as they change so does the possibility of a dividend change
Dividends are a dollar amount per share, not a percentage. You will get the same dividend each year no matter what the stock price is. The yield is based on the stock price and expressed as a percentage.
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Part 1
If I bought 10 shares for $100 of ABC company at a 5 percent dividend. Payed out annually.
Year one stock price = 100 percent yeild = $5
Year two stock price = 200 do I get $5 or 10$.
Part 2
How does percent yield change.
Example when the stock of ABC hit 200 would the yield automatically go down to 2.5%?
Part 3/3
If the percent yield changed from 5% to. 3%
And the stock was still wroth 100 dollars in the first year would i get 3 dollars or 5 dollars?
Please help
