Dividend yield question

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whatsmoney

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I read lately that Bank of Ireland pay out a dividend yield of 6% per annum.
I know that profits obviously vary from year to year, but say for example someone invested 100k in BoI shares, roughly how much of a dividend could he expect to receive per year? Also, if you were to buy into an ISEQ tracker fund like Quinn life's Celtic Freeway, are dividends paid into this fund from the various ISEQ companies, or do you miss out completely on the dividend payments made to shareholders? ie. does it solely track the ISEQ without dividend payments?
 
6% of 100K is 6K;) This would be subject to tax at marginal rate plus 2% levies.

Quinn's tracker fund does enjoy dividends directly.

In Ireland we have tended to distinguish between tracker funds which are like any other managed funds receiving divies directly and suffering charges explicitly, with an investment mandate to attempt to track some index, the other type are known as tracker bonds which pay a return related by formula to some index(es) and usually guarantee a return of capital. The indexes are typically capital only, so there is no extra contribution from divies though these will have been implicit in the terms quoted in the same way as the charges are also implicit.
 
Thnx Harchibald!
I didnt think it was that simple! For some reason I thought the dividend
payout was calculated from the profits the company made, as regards against
how much shares you held in the company.
Is there anywhere where the dividend yield percentages are listed for ISEQ companies?
 
whatsmoney said:
I read lately that Bank of Ireland pay out a dividend yield of 6% per annum.
I know that profits obviously vary from year to year, but say for example someone invested 100k in BoI shares, roughly how much of a dividend could he expect to receive per year? Also, if you were to buy into an ISEQ tracker fund like Quinn life's Celtic Freeway, are dividends paid into this fund from the various ISEQ companies, or do you miss out completely on the dividend payments made to shareholders? ie. does it solely track the ISEQ without dividend payments?
Click to expand...

you will find the history of Bank of Ireland dividends since 2000 [broken link removed] The dividends are shown as cents per share. The total dividend for the most recent year was 60.4 cents per share before deduction of tax. At todays share price of €12.01, this represents a 5.03% yield
 
whatsmoney said:
Thnx Harchibald!
I didnt think it was that simple! For some reason I thought the dividend
payout was calculated from the profits the company made, as regards against
how much shares you held in the company.
Is there anywhere where the dividend yield percentages are listed for ISEQ companies?
Click to expand...

I hope the above is just part of your "investor education"
and you dont make any snap decisions until you are
more familiar with the investment fundamentals in general??


wrt Quinn Life's Celtic Freeway, and funds in general,
they are an option for someone not confident to do their own research
and pick their own stocks, but at the end of the day you are putting
your trust in some fund manager who will take an annual fee from
you to make your decisions,

the more FLASHY the fund name, the more marketing spin is being
put on, and the more cautious you should be of it.

take care

JR
 
i'm very new to online shares and dividends and just want to know that if the gross dividend is say. 12 euro, will i recieve a cheque for 12 times the number of shares i hold in that particular equity?
 
No.

Dividends from Irish companies: You will get 12 x number of shares less a Dividend Withholding Tax(DWT) of 20% which is deducted automatically.

Dividends from foreign companies: DWT may be deducted at various rates depending on country

You may be liable for extra income on the dividends or even be eligible for a refund of the DWT deducted.
 
at 6 % this sounds very attractive bearing in mind the drop in share price

Is it feasible to buy shares in the days before the dividend is paid then sell immediately afterward thus collecting 6% for a few days work?

where can one find a list of the dividends paid by other companies?

Is BOI the best?
 
Is it feasible to buy shares in the days before the dividend is paid then sell immediately afterward thus collecting 6% for a few days work?
Click to expand...

If you buy the day before the stock goes ex. div. you will get the 6% but the stock will drop by roughly the amount of the div. on the day it goes ex. div. You will also have transaction costs such as 1% stamp duty on Irish shares and buying and selling costs.

Is BOI the best?
Click to expand...

AAM doesn't allow the discussion of individual stocks.
 
thanks jpd,

just a question. if i hold 100 shares and each share gives a dividend of 12 euros then i should get a cheque for 100 shares times 12 euros, which amounts to 1200 euros minus a tax of 20% (1200-240), which is a final balance of 960 euros. however a friend of mine says he has about 9K in aib shares and only get a few cents per share in dividends. this makes me wonder if some of that 12 euro dividend is kept back by the company. is this the case? maybe there is a formula for calculating from the stated gross (or net) dividend to what the company actually hands out?
 
The dividend typically will be in cents, you can't expect an approx 20 euro share to pay you out 10 euro a year in yield. That'd be a 50% yield.
 
Dublin71,

bank dividends for the year 2006 were as follows:


AIB = 71.80 cent

Anglo = 16.24c

BoI = 60.40c

ILP = 68c
 
Note that not all of the earnings per share (EPS) is paid out as dividends (DPS).

In fact, some firms pay no dividends, e.g. Elan, Ryanair, etc.
 
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