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Author: Packers101 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3859  
Subject: Re: Groupon Inc Date: 9/1/2012 10:43 PM
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Sorry - I just spotted a typo -

If the stock were to rise to $15 or drop to $5, the dividend yield changes only for new purchases. YOU still have a cost basis of $10, so any payouts will be based on your $10 per share cost. That is YOUR personal rate. If the company raises its payout to $2, you would now be receiving $2 on a $1 investment, and YOUR rate would then climb to 20%. But this is based on a change in the payout amount, not a change in the stock price.


This should really say

If the company raises its payout to $2, you would now be receiving $2 on a $10 investment, and YOUR rate would then climb to 20%.
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