What is a 'declared dividend rate'.

What is a 'declared dividend rate'.

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Original Poster:

1,288 posts

190 months

Monday 1st November 2010
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I need to calculate the declared dividend rate to help me work out the dividend yield.

I have the company accounts but I'm not sure how to get the declared dividend rate value.

Please help!

anonymous-user

55 months

Tuesday 2nd November 2010
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there is usually a line in the accounts that says Dividends paid or very similar wording

just have in mind that this years might be the same, less, or more than last year's and might also be nil

Eric Mc

122,117 posts

266 months

Tuesday 2nd November 2010
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"Yield" refers to a percentage - not actual amounts. It's a ratio type measurement of the returns obtained by a company.

A quick Google reveals this as the way it is measured -

Dividend Yield = annual dividend per share / stock's price per share

I would presume the "dividend rate" referred to by the OP is the "annual dividend per share" figure. Obviously, to know this, you need to know how many shares have been issued and the total dividend amount issued by the company.
Matters could be complicated if there are different classes of shares in issue and different dividends attached to each class of share.

I used to know these things once.

Edited by Eric Mc on Tuesday 2nd November 08:08

jeff m

4,060 posts

259 months

Tuesday 2nd November 2010
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Should be easy to find the dividend.
Look at the bottom or top there is often a note saying "all amounts in millions except dividend which is in ...)
Then scan down 'til you see a small numbersmile
Once you have the dividend it is just arithmetic.

If you don't find it it is very likely they do not pay a dividend, a company would not make it's dividend difficult to find, it's something they want you to know.

Mx_Stu

810 posts

224 months

Tuesday 2nd November 2010
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Does this follow on from your query the other day about how to present it?

What the status of the company? Quoted? Unquoted?

Larger companies normally set out towards the start of their annual report what the interim/ final dividends paid are.

Be careful using the balance sheet/ P&L and make sure the dividends paid relate to the correct classes of share i.e. That you don't have 1p paid on Ordinary Shares but then 5p paid on something like a deferred class of share.


Edited by Mx_Stu on Tuesday 2nd November 14:23