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Learning to Invest / My Dumbest Investment
|Subject: Re: Groupon Inc||Date: 8/21/2012 9:08 PM|
|Author: jdc115||Number: 3567 of 3907|
I'm not sure you have given enough consideration to the "if not" cases.
For sure then my yield will change, if not can go both ways.
To use an example, I have held BIP for a few years. When I bought them around 15.50, they were paying out 27.5 per share I believe. Now they pay out 37.5 per share and they price is up 135%. Due to the price increase, the actual current yield is down but the payout on my original investment is up quite a bit.
Should I use the current yield which would give me a 4.3% dividend or look at what the yield is on my original purchase amount and the current payout which would be around 10.5% now?
Out of laziness, I just look at the 4.3% is the other method takes time for me to calculate as well as look up historical data. But wouldn't the later be a fair representation of my yield?
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