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Learning, Sharing, and Teaching => Investor Alley => Topic started by: strider3700 on May 20, 2012, 06:07:11 AM

Title: questions about understanding dividends
Post by: strider3700 on May 20, 2012, 06:07:11 AM

I can't sleep so I figured I'd look into dividend paying funds just to see what was available and what they pay.   This was one of the top hits from google so I'm not leaning towards it or anything like that.
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/summary/?id=18182
Now I'm looking at it and can't figure out what the dividend it pays/has paid actually is.  I don't see the yield listed anywhere

I see that it pays quarterly.  and the income dividend was 0.15 on the last quarter.  Does that mean it paid 15 cents/share last quarter?  Since shares are $44.93 isn't that a 1.3% yield assuming the price and dividend stays stable?    I've got government bonds that pay better then 1.3%.  Does this fund suck or am I reading it wrong?

What sort of yield is reasonable from a dividend fund or do you guys do individual stocks?

While I'm learning.  Anyone have recommendations on a book to learn about this, the terms and the math involved in figuring this out?

Title: Re: questions about understanding dividends
Post by: iwannaretire on May 20, 2012, 07:27:37 AM

Yes, it looks like it paid $.15 last quarter, which would be a 1.3 percent annual dividend yield.  However, the dividend varied over the last 4 payments, so it could be more or could be less.

Have you considered dividend ETFs?  They may have lower fees.  I have some money in SDY, which invests in stocks that raise their dividends every year.  Right now, it yields about 3.3 percent. 

To learn about dividend mutual funds or ETFs, try Morningstar's website.