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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
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