How to calculate % dividend?

[makko]

Hi,
How exactly do you calculate the percentage dividend of a share?

Say for example, Intels last divi was 11.3c (0.42%) what is their percentage dividend? Also, is this 11.3c per share?


Just like BOI pay 6%(or something like that). How is that calulated from the dividend paid?

Thanks,

Makko

 

[Brendan Burgess]

Dividends are declared in cents, not in percentages.

So let's say Bank of Ireland pay 50 cents per share once a year.

If the share price, today, is €10, then the dividend yield is 5% ( 50/1000)

If the share price of Bank of Ireland rises to €20, then the dividend yield will fall to 2.5%.

But the key to understanding this is that the company pays a dividend per share in cents. They don't pay percentages. That is calculated by you or by analysts afterwards.

Additional points

The 50 cents is gross. They will deduct 10 cents Dividend Withholding Tax and you will receive 40 cents.

Most companies pay dividends twice a year. I have used once a year in the example for simplicity.

 

[sydnick]

if dividend withholding tax (20% in this example) is withheld are the dividends you receive then taxable at your marginal rate or has tax already been paid ?

 

[Bank Manager]

Yes - if you pay higher tax rate - you declare the dividend on your annual return (Form 12 if you are a PAYE earner) - and you'll pay the additional tax due ...

Regards,

BM

 

[makko]

Thanks guys that clarifies it for me. I was thinking along those lines alright..

About the dividend withholding tax. I am a student and don't really have to pay tax at the moment. What happens there?

I have been getting BP dividends in the post but they have the tax deducted.
Will this happen with irish share also?

 

[ClubMan]

About the dividend withholding tax. I am a student and don't really have to pay tax at the moment. What happens there?

If you are otherwise exempt from income tax then you may be able to claim back the dividend witholding tax. Not sure how you do this though. Ask Revenue.

I have been getting BP dividends in the post but they have the tax deducted.
Will this happen with irish share also?

Yes.