Respectfully disagree with that perspective of dividend assessment ... That's like driving a car with the perspective of only the rear view mirror and not the front windshield ... Reality is what it is, and if the stock has dropped in value, then dividend assessment is based on current value, because if the stock is sold and another purchased, one would have the same current amount to invest and assessI look at it a bit different. If out in $1000 into a stock with a 5% yield, I would be getting $50 payout. If the company continues to pay the same amount but the stock price drops in half, the yield will go to 10% but I am still pulling the same $50 from my initial $1000 investment. In other word, it is the yield on cost vs current yield is more realistic to view your dividend return"Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends.Read more: http://www.investopedia.com/terms/d/dividendyield.asp#ixzz24...
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