| Need help understanding Yahoo Finance site. |
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mongander
New Poster
Cash: $ 0.45
Posts: 2
Joined: 10 Sep 2005
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| Need help understanding Yahoo Finance site. |
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I have composed a portfolio of owned and stocks I'm considering buying. This portfolio is accessed on Yahoo Finance site. I have the portfolio arranged to display the latest dividend and dividend yield. I only recently noticed that the dividend yield shown on the portfolio is wildly different from the stock's full page display. Why does the dividend yield differ on the Yahoo portfolio from the full page data sheet? For instance on Sept 9 the portfolio shows dividend yield of 49.56% for FRO while the data page shows 28.70%. Can anyone explain?
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Sat Sep 10, 2005 2:38 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Yes.
Dividend yield is the annual dividend** divided by the current share price**. A $20 stock paying a $1 dividend yields $1/$20 = .05, or 5%.
The ** mean that the dividend changes and the current share price changes frequently. The former changes whenever the dividend payout is announced, typically quarterly, and the share price changes daily.
Yield is directly proportional to dividend amount (dividend increase = yield increase).
Yield is inversely proportional to share price (price goes up, yield goes down).
These two factors change the yield constantly. Your two datums differ probably because they were not updated at the exact same time.
Do remember that the next dividend payout could increase, decrease, stay the same, or even be skipped altogether. For a real example of that, check the history of VLCCF (I loved that stock, but eventually had to let it go).
"Expect me when you see me."
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Sat Sep 10, 2005 8:52 pm |
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mongander
New Poster
Cash: $ 0.45
Posts: 2
Joined: 10 Sep 2005
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| Thanks Rolo |
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I talked my Mom into buying a small amount of Frontline. I know it's volatile with tankers erratic hauling fees but FRO has such a low PE,I figured it was a good bet. She is heavily weighted in energy stocks and I'm trying to talk her into diversifing by buying UU, which is more into water supply and treatment,yet still pays a decent dividend.
I can't understand why Yahoo Finance wouldn't standardize their data since it all comes from their own source.
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Sun Sep 11, 2005 12:27 am |
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