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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 4353

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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