Dividends are typically declared twice a year in the UK, when the company announces its interim and final results. The two dividend payments declared add up to the total dividend for the year. The historical yield is calculated by dividing last year’s declared dividend by the current share price. The forecast yield, in contrast, is [...]
2007
Consider a fictitious company, Loadsamoney Ltd, whose shares cost 100p each, which is paying an annual gross dividend of 10p per year. The dividend yield is calculated by dividing the dividend by the share price, and then expressing it as a percentage. In Loadsamoney’s case then, the dividend yield is: 10p/100p x 100 = 10% [...]