Dividends History

[Dolby]

What does the bit below dividend history mean?
Ordinary at 1c and linked units?

Is it as simple as saying that if I had 500 shares of each, on the pay dates I'd receive R205 , R180, R81 and R28 respectively?

 

[bchip]

If you held those shares on LDT (Last Day to Trade) then you will receive the respective dividend amount on the Pay Date.
The amount is usually stated in cents.

Eg ADI has 5.56cents per share so for every 100 shares you will receive R 5.56
At the current price thats of R8 per share thats a div yield of 0.7%
That share only pays once per year so thats the div yield per annum

 

[bchip]

Youll notice the linked units generally refer to property stocks (RDF and AWA both are property stocks)
They work slightly differently, they are not fully taxed as dividends, as its really just rent income getting passed on,
it gets taxed at the normal income tax rate....ie its seen more as interest income than dividends.

 

[Dolby]

Thanks bchip!



Why the 100 share grouping?
If I had 50 shares?
Is that even possible?

 

[Dolby]

Can't really see too well - am not sure what that is representing. Which dividend history are you asking about?

But if you hold shares in those stocks, you will receive the dividends above, less dividends tax of 15%. Using your above amounts you'll receive R174.25, R153, R68.85 and R23.8.

The company paying the tax withholds it when paying out dividends so you need not worry about paying it over to SARS.

Thanks - wanted to double check that one could be really be 7x the dividend of the another, as it sounded quite a big difference and thought maybe those descriptions influenced something.

Most shares payout some type of dividend at least once a year?

 

[bchip]

The dividends is quoted per share, so you could own 23 (as an example), just multiply 23 * div / 100 (as its in cents).
It used to be round lots in the past (you had to buy in 100s) but thats changed.

Some companies are big on dividend payouts, others like to reinvest the money and dont pay anything at all.
The range is usually between 0 to 10%
Property stocks are known for bigger payouts, they are usually grouped similarly to bonds (SA retail bonds) or Fixed Deposits,
however they do have the chance of growing their capital value.

Other stocks tend to focus on achieving capital growth, and dont focus on div payouts as they prefer
using that money to invest in new business, acquisitions or even the current business.

At the end of the day your total return is = Capital Growth + Div Yield
Make sure you dont focus too much on 1 as you might miss the other,
for instance Richemont has paid very little in dividends however the capital growth has been phenomenal.