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Share DividendsShare DividendsStage 6 - Year 11Stage 6 - Year 11

General MathematicsPreliminary

2

Share Dividends (1/5)

Shares earn money through:

•Dividend Payments

•Increasing Valueor not.

3

Click in/Click Out

Share Indexes are to give a guide as to how the Share

market is performing.

All OrdsAll Ordinary Shares

ASX 200Top 200 Companies

ASX 50Top 50 Companies

ASX 200

All OrdinariesIndex

Shares - Australian All Ordinaries (2/5)

ASX 200Index

ASX 50Index

All Ords ASX 50

4

Share Dividend Calculation (3/5)

Share Dividends are calculated by dividing the Profit to be distributed to share holder by the number of shares

in the company.

Share Dividends =

Profit to be distributed to share holder

The number of shares in the company

Eg. $3 million profit is to be shared among 150 000 share holders.

Share Dividends =3 000 000150 000

= $20

5

Share Dividend Yield (4/5)

Dividend Yield gives the true worth of the shares.

It is the dividend as a percentage of the share price.

Dividend Yield =Dividend

Share Pricex 100%

Eg. A company with share price of $9.60 declares a dividend of $1.20.

Dividend Yield =1.209.60

x 100%= 12.5%

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Share Dividend Yield (5/5)

Compare the dividends for . . .

CommonwealthBank

Dividend = $1.50Share Value= $4.50

Dividend = $ 8.00Share Value= $32.00

Dividend Yield =1.504.50

x 100%

≈ 33.3%

Dividend Yield =8.0032.00

x 100%

≈ 25%

Qantas gives the best yield