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Old 25-06-2015, 12:21 AM   #46
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Sorry to disturb the discussion, but I have a few questions to ask as I don't understand how these things work.

1. After dividends are paid, the next day, the ex-dividend date, why would the price price based on the amount of dividends given? Is it due to people selling off their shares? Or is it some mechanism?

2. As for share prices itself, what can cause the price of shares to increase/decrease? Is it only affected by buying and selling? Are there any other ways to affect it?
1. Not sure about the question, can rephrase a bit?

2. 3 things - supply, demand and market sentiment.
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Old 25-06-2015, 12:42 AM   #47
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Sorry to disturb the discussion, but I have a few questions to ask as I don't understand how these things work.

1. After dividends are paid, the next day, the ex-dividend date, why would the price price based on the amount of dividends given? Is it due to people selling off their shares? Or is it some mechanism?

2. As for share prices itself, what can cause the price of shares to increase/decrease? Is it only affected by buying and selling? Are there any other ways to affect it?
1.
The reason for the adjustment is that the amount paid out in dividends no longer belongs to the company and this is reflected by a reduction in the company's market cap. Instead, it belongs to the individual shareholders. For those purchasing shares after the ex-dividend date, they no longer have a claim to the dividend, so the exchange adjusts the price downward to reflect this fact.

From Investopedia.

2. Buy/Sell/Dividends/Rights etc?
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Old 25-06-2015, 01:30 AM   #48
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I already posted this in the CPF investment thread. Bought FCT for $7,300 in 2008-2009. Collecting annual dividend of about $1,540. So I consider my dividend warrior strategy reasonably successful

In contrast, I bought UOB same period for $8,000, UOB not known as a dividend stock but big component of STI. Annual dividend only $550. So the prediction in the chart above turned out to be true, dividend yield of FCT is almost 3x that of UOB.
Sorry for my newbie question.. How do you calculate the div yield base on the above numbers? Sorry Im abit confuse here..
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Old 25-06-2015, 08:26 AM   #49
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Sorry for my newbie question.. How do you calculate the div yield base on the above numbers? Sorry Im abit confuse here..
You can't calculate dividend yield base on the picture as it's showing dividend yield already and it's not showing the exact dividends given.

But you can calculate the dividend yield using limster's numbers which shows exact dividends given per year($1540) and the share price($7300) though you dunno how many shares he bought.
Just divide 1540 by 7300 as a percentage which is 21% dividend yield.
UOB's example would be 6.875%

All dividend yield you see everywhere is calculated based on current share price and current 1 year dividend given. Just divide the dividend's exact 1 year payout by the current share price as a percentage and you will get the current dividend yield if you buy at that share price now.
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Old 05-08-2015, 08:56 PM   #50
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After many years here, one of the most basic repeated questions has always been about dividends. As such, I will summarise the key points here that any beginner can refer to regarding dividends.
I would be using layman terms for the most part so beginners can easily understand.

A) Dividends are a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Simply, dividends are what the company pays you for holding their stocks.

B) Dividends are not compulsory. It is different from Reits' distribution but the difference isn't gonna mean much to a layman.

C) Dividends can be pay out yearly, quarterly, monthly or even randomly without a fixed schedule. Most company that has a culture of paying out dividends though, would adhere to a certain frequency. Commonly found in the US is a quarterly payout.

D) Dividends has many dates that will appear to confuse beginners. Just for simplicity's sake, the following are the more important ones to note...

1. Ex-Div, this means excluding dividends. It means if you buy a stock on this day, it excludes the latest dividend payout. Do not buy on this date if you want the dividends.

e.g. ex-div is July 27, buy on July 26 or anytime before that to get dividends
I repeat, buy before July 27 to get dividends.

2. Pay date or Date Paid/Payable, all means the same. It is the date where you will see the dividends in your bank account. The day you received the $$.

Every time a company pays dividends, the ex-div date decide who would get the dividends while the pay date decides when you receive it.

3. Record date, means nothing to you as a beginner. Don't bother. Go wiki if you really need to know. Just don't bother if it's confusing you.

E) Selling, if your sole purpose is to get dividends and you wish to sell the minute you are confirmed that you are entitled to a dividend, sell on ex-div date. How this works is, e.g. ex-div date is August 15, you want to get the dividends, you buy on August 14, hold it to August 15, sell it on August 15, ta-da, you have the dividends. Yes, holding it for a day is all it took.

Note that, it's a zero-sum game usually to try this method as the Stock would gap down(meaning move down) to show the pay out of the dividends.
E.g.
if ex-div is on February 12,
the stock price is $10 on Feb 11,
the dividends is $1,
The stock would most likely open at around $9 on Feb 12, thus taking into account the $1 dividend that is paid out.

So if you buy on feb 11 the stock would be $10. On feb 12, the stock would be $9, and you will be entitled to a $1 dividend.
The above is the usual case but there are exceptions where the stock swings back up immediately to the price pre-exdiv or $10 in this case. But the fall is nearly always gonna happen.

F) Also, dividends stocks in SG are not taxable. You will receive whatever amount is declared to be the dividends paid out. The tax is already done at the corporate stage, don't need to worry about it.

G) Another thing is dividends cash/shares options. A company can choose to pay you either with dividends shares or cash($), both the shares and the cash should come to about the same value though sometimes there might be a discount given for taking shares.

OCBC recently gives out discounted shares, i.e. their stock price per share is for example $10.30, they give you shares for $9.70.
That means if you are suppose to receive $19.40 in dividends, you will get to receive 2 shares of OCBC if you pick to take shares instead of dividends cash. You cannot choose both. Also, if your dividend cash has any left over, e.g. if you recevied $20 dividends and you choose shares, you will get 2 shares and $0.60 cash back into your bank account. I'm not sure about this but will update when someone can clarify.
edit: ok, scb will round down any odd shares so it's best to choose cash. As for shares round up/down, it still depends on the individual counters, always check before subscribing to shares or you might lose the leftover cash.

H) to find the dividend dates, refer to sgx.com, move your cursor to Company Information(the 2nd blue bar at the top), choose Corporate Action from the drop down list, and you will see all the dates for the dividends.
If you need to find a particular company's dividends, use the 'Company Name:' to find it.

I) Special dividends, this are dividends that are on top of the usual payout you see from the company, it is usually a 1 time thing and should be treated as a bonus.

J) Rights and other offers, this you will need to wiki.

Hope the above clears up most doubts people have with regards to dividends. Feel free to correct any mistakes you see and I will update this post.
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Old 08-08-2015, 03:31 PM   #51
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Hi guys, just want to ask some questions. Cos im going to invest soon.

1.when dividends are issued, do they send u a letter? Or can request for email?

2.is it paid out in cheque or banked in?

3.which platform allows auto reinvestment of dividends? Meaning dividends earned goes straight to buying more shares if possible.

Why im askong abt 1 and 2 is cos im overseas
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Old 08-08-2015, 03:41 PM   #52
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Hi guys, just want to ask some questions. Cos im going to invest soon.

1.when dividends are issued, do they send u a letter? Or can request for email?

2.is it paid out in cheque or banked in?

3.which platform allows auto reinvestment of dividends? Meaning dividends earned goes straight to buying more shares if possible.

Why im askong abt 1 and 2 is cos im overseas
I'm overseas too, not an issue at all.

Dividends will be announced in their quarterly reports or bi annually reports. Can be check online via SGX or their website 'investors relations' or financial news anywhere online.

Dividends will go into the bank account nominated to CDP by your broker when opening account with the brokers.

Auto reinvestment plan depends on the coy, if there is this scheme, they will mail a letter to you, asking you if you want to receive cash or shares at a discounted price or partial cash and shares (depends on coy).

If you are overseas, the last point might be an issue cos you need to return your reply via mail, so this may be quite troublesome.
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Old 08-08-2015, 04:08 PM   #53
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Are you considered to own the shares on trade date or settlement date?

Eg Buy order filled on 1 aug, XD 2 aug, settlement 4 aug. Who gets the dividend?
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Old 08-08-2015, 04:25 PM   #54
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Are you considered to own the shares on trade date or settlement date?

Eg Buy order filled on 1 aug, XD 2 aug, settlement 4 aug. Who gets the dividend?
as long as u bought before XD u get the dividend
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Old 24-08-2015, 09:41 PM   #55
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Sorry. I am new to investing. I have a question about how dividend works.

Just keep buying shares and store there? example like, you keep deposit money into the bank to earn interests?
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Old 24-08-2015, 10:11 PM   #56
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Sorry. I am new to investing. I have a question about how dividend works.

Just keep buying shares and store there? example like, you keep deposit money into the bank to earn interests?
You can think of it as interest earned but more formally;

Dividends are incentives that companies paid out from its net profit to shareholders.

You don't have to 'keep deposit' more money to earn the dividends. You just have to own the shares. Of course you buy more, you get paid more, same logic as more interests earned with more capital on your bank savings account.

Example you buy 200 of XYZ Company shares at $1. Cost = $1 X 200 = $200. They issued a dividend of $0.05 per share(DPS). You will get paid $0.05 X 200 shares = $10.

Dividend yield = Dividend per share/Share price = $0.05/$1 = 5%

Last edited by deathman91; 24-08-2015 at 10:21 PM..
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Old 25-08-2015, 01:27 AM   #57
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Are you considered to own the shares on trade date or settlement date?

Eg Buy order filled on 1 aug, XD 2 aug, settlement 4 aug. Who gets the dividend?
Got read what I wrote on first post? It would be very beneficial to you.
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Old 25-08-2015, 11:14 AM   #58
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Hi All,

Is there chart for dividend announcement and payment?

thanks all.
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Old 25-08-2015, 11:20 AM   #59
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Hi All,

Is there chart for dividend announcement and payment?

thanks all.
What kind of chart?

dividends.sg does shows dividends amount and yield
sgx shows amount only.
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Old 25-08-2015, 11:56 AM   #60
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What kind of chart?

dividends.sg does shows dividends amount and yield
sgx shows amount only.
dear perisher,

previous link by you is good enough for me.

thanks
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