Diveide by number of shares in issue gives Earnings Per Share (EPS)
From this you can get P/E (Price Earnings ratio).
Now some of this EPS can be distributed (or not ) as a dividend.
From this you get Earnings Cover (for example the dividend could be half the EPS which would mean 2x dividend cover.
The dividend yield is Dividend Per Share/share price x100
Yields on equities are usually around 2% but can be as high as 6%.
A growing company will need to retain earnings for expansion so dividend in growth company will be very low (or zero).
Where the yield or dividend payment looks outside these ranges then there is something unusual going on. The dividend may have been declared and then the share price slumps for some reason.Or the company may be paying a one-off special dividend or distribution of capital.
The dividend is quoted as an amount per share per annum, but may equally be the amount for one quarter (you have to read the information)
must be a mistake.
I am a little confused on dividend yields and rates. This one company has $0.10 cents as its annual dividend rate, and it trades at roughly $25 a share. Another company has $44 dollars as its annual dividend rate, and it trades at roughly $7 dollars a share. That is over 366%! I don't understand why there is this huge difference.
My second question is: Is it lets say $0.10 cents per share? or $44 dollars per share? I cannot seem to find a straight answer anywhere.
