### Author Topic: Did I calculate this correctly?  (Read 942 times)

#### tree-hugger

• 5 O'Clock Shadow
• Posts: 2
##### Did I calculate this correctly?
« on: May 14, 2015, 02:44:26 PM »
I was reading one of the articles on the site about a stock called SNH. I believe it was a Real Estate Investment Trust. This was a few days ago so forgive me if my info is incorrect. But from what I could gather, it seemed as if it would pay a good deal out in monthly dividends if you owned enough shares. I looked into the stock as of today and I'm wondering if my calculations are correct:

The Stock price is 19.95 and the div/yield are 1.56/7.90% so...

In theory, if I owned say 300 shares or more of this stock, I could be making over \$2000/month in dividend checks?
I could be getting this all bass akwards so that's why Im asking. Someone clear this up for me? Thank ya in advance.

#### ingrownstudentloans

• Stubble
• Posts: 166
• Age: 31
• Location: Nashville, TN
##### Re: Did I calculate this correctly?
« Reply #1 on: May 14, 2015, 02:53:45 PM »
Tree,

SNH pays quarterly dividends.  The \$1.56/7.90% that you posted is the annual dividend distribution rate/payment.  The below chart shows the last 12 months of dividend payments from SNH.  As you can see, you would get \$.39/share (provided the payout remains the same for the next quarter and every quarter after that).  So, using your hypothetical, your 300 shares would get you \$117.00 every quarter or \$468.00 each year (again assuming the payment remains constant).  The dividend payment amount would increase if you DRIP'd the previous payments, but you would not be getting \$2,000 each month or even each year.  If you ever do find an investment that pays \$2,000/month indefinitely on a \$5,985.00 investment, you should do 1 of 2 things: 1) run away fast because it is WAAAAYYY too good to be true, or 2) if it checks out, send me a message because I want in!!!!!

I hope that helped.

Past Dividends
Ex-dividend date   Amount   Record date               Pay date
April 22, 2015           \$0.39   April 24, 2015               May 21, 2015
January 21, 2015   \$0.39   January 23, 2015       February 24, 2015
October 15, 2014   \$0.39   October 17, 2014       November 21, 2014
July 16, 2014           \$0.39   July 18, 2014               August 21, 2014

#### tree-hugger

• 5 O'Clock Shadow
• Posts: 2
##### Re: Did I calculate this correctly?
« Reply #2 on: May 14, 2015, 02:57:05 PM »
Well, I'll be! I didn't think it could that easy! Nothing ever is, is it? :) Thank you for clearing that up! And I'll keep you posted if I come across that pot o' gold!

#### ingrownstudentloans

• Stubble
• Posts: 166
• Age: 31
• Location: Nashville, TN
##### Re: Did I calculate this correctly?
« Reply #3 on: May 14, 2015, 03:01:55 PM »
I'll keep you posted if I come across that pot o' gold!