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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2172  
Subject: Re: Where are the Customer's Yachts Date: 2/24/2012 1:06 AM
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...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!!
thanks,
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.

Kahuna, CFA
Investment Professional
1974 - Present
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