The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / The BMW Method

URL:  http://boards.fool.com/if-you-start-with-a-stock-with-a-5-dividend-and-30263675.aspx

Subject:  Re: A learning curve Date:  9/14/2012  9:01 PM
Author:  RHinCT Number:  40715 of 41633

If you start with a stock with a 5% dividend, and the stock price rises 25%, and you sell the stock and use all the proceeds to buy a different stock with a 5% dividend, that new 5% dividend is based on a 25% larger base number.

You need to look at it both ways.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us