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QuestionsCategory: Entry StrategiesFactors for calculating historical dividend yield
Leah Lixin Phoon asked 8 months ago

I understand the formula for dividend yield is dividend per share divided by share price.

  1. For the share price of historical high yield, do I use the amount on the day the dividend is given out or the day it hit the lowest share price during a time period? e.g. if the dividend is given out on 2 Aug 2020 but lowest share price was on 8 Sep 2020, which do I use as the denominator for 2020 yield? Likewise for historical high.
  2. For the dividend per share, do I use the sum of the total dividends given out during the entire year and divide by the no. of the times dividend was given out? i.e. average; or use the dividend given out during the period of lowest/highest share price?

Thanks in advance. :)

2 Answers
Jieren Zheng answered 8 months ago
  1. Yes, we use the highest and lowest price for that financial year where the dividend was declared.
  2. You use the total sum, but please exclude special dividends as we would wish to focus on those recurring ones.
Leah Lixin Phoon replied 8 months ago

Thank you!

Victor Chng replied 8 months ago

Thank you JR

Jieren Zheng replied 8 months ago

Welcome!

Victor Chng answered 8 months ago

Hi Leah Lixin,
 
It is as what JR had mentioned.