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diary:2023-10:2023-10-10

from: https://www.finrafoundation.org/sites/finrafoundation/files/dividend-paying-stocks.pdf - Money math for teens - Dividend paying stocks

  • A share of stock is ownership in a corporation.
  • Dividends are sums of money paid by a corporation to shareholders.

To compute yield, use

round((dividend / stock_price) * 100, 1)

For example

In [6]:
def yield_pct(dividend, stock_price):
    res = round((dividend / stock_price) * 100, 1)
    return res


In [7]:
dividend = 1.55; stock_price = 82.00

In [8]:
yield_pct(1.55, 82.00)
Out[8]:
1.9

So, if a company pays \$1.55 dividend and its stock price is \$82.00, then the yield is 1.9%

pg-5

  • profit yield = ((new_price / old_price) -1)
  • total yield = profit yield + dividend yield

pg-10

  • A dividend aristocrat is an S&P 500 company that has raised its dividend every year for the past 25 years.
  • A dividend achiever is an S&P 500 company that has raised its dividend every year for the past 10 years.
diary/2023-10/2023-10-10.txt · Last modified: 2024/03/14 15:21 by raju