The Motley Fool Discussion Boards
Investing Books / Other Investing Books
|Subject: Re: Where are the Customer's Yachts||Date: 2/24/2012 1:06 AM|
|Author: kahunacfa||Number: 1850 of 2172|
...Is is safe to assume, in a split 2-1, that the dividend yield would be the same as before the split? or companies paying dividend and splitting shares usually decrease the dividend?
This aptitude test has been puzzling me for some time, and maybe I shouldn't own any stock at all!!
mic - miclombardo | Date: 2/15/2012 4:13:25 AM | Number: 1849
When a dividend paying stock splits, the dividend per share usually splits porportionally as well. For example, for a company that pays a dividend of $0.40 per share each quarter splits the stock 2 for 1, the dividend on the split stock becomes $0.20 per post-split share each quarter.
1974 - Present
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|