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Dividend School:How much dividend your stock pays and when

Investors new to stocks often ask what Is the best way to find out how much dividend a stock pays per year.  The most accurate answer is to check the past history of dividends declared by the stock at www.sgx.com

Navigate to Company Disclosure > Corporate Action. Say you are looking at KREIT’s past dividends declared.

You will typically get a few kind of corporate actions under this section. Some are dividend declaration (mark by the red rectangles) and some are rights issues.

To identify the full dividend declared in 2011, add up the dividends declared in the Particulars column listed with Expiry date in 2011.

In this example, 0.0208 + 0.0164 + 0.0155 + 0.0183 = 0.071. So this is the total amount that was paid out in 2011.

The Expiry Date correspond to the “Ex Div” or Ex Dividend you see on your stock broker trading screen (e.g. Poems, Kim Eng, Tradestation). This is the date you have to get in by, if you want to be eligible to get the dividend.

Another important column is Date Paid/Payable. This denotes when the money will get credited into your bank account.

Last year’s dividend does not equate to next year’s dividend

New investors have the idea that what I will get if I get investor now will be the same as last year.

Stocks do not have an obligation to pay dividends, compare to debts/bonds which are obligated to pay interests. So do savings.

Some companies have a dividend policy where they will declare that they will pay out X% of their earnings or X amount for the next Y years. These are projection, but the company don’t have to honor it (of course if they go back on their word, it can be seen as a sign of weakness and that would affect there share price.)

A good dividend stock will usually pay within their means, and that usually entails paying within their profits or cash flow.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. Do follow myDividend Stock Tracker which is updated nightly  here.

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lewis

Friday 11th of October 2013

Do you happen to know why in 26 Aug 2012, we need to add less tax and tax Exempted? What is thendifference between the 2?

Drizzt

Wednesday 18th of July 2012

yes thats right

Createwealth8888

Wednesday 18th of July 2012

Newbies should learn to look at both dividend and retained earning as one entity and evaluate it according to your investing objective.

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