Dividend help

soulman247

Hi

If a share pays 8.90p divdend per year, per share how much is that. (Assume I own one share)


I get confused with numbers so need your help, please write it in words.

Also how do I work out how much in dividend's I will get paid, assuming I no how many shares I have and the dividend per share.

This many sound basic but I just wanna no I am doing it right.

Ifts

Prices are usually displayed in pence, so 8.90p would be eight point nine pence (8.9p), just short of nine pence per share.
To work out how much in dividends you will receive, its:

eight point nine pence (0.089p) X number of shares held = total dividend

If for example you hold 500 shares and they pay a dividend of 8.9p per share it would be: 0.089 X 500= £44.50

soulman247

Great reply you have helped me loads

Just one more questions- I have searched up ladbrokes on google finance and it says the share cost 122.00.

What does that mean?

CLAPTON

soulman247 wrote: »

Great reply you have helped me loads

Just one more questions- I have searched up ladbrokes on google finance and it says the share cost 122.00.

What does that mean?

it means to buy each share would cost £1.22p plus dealing costs at today's prices (if could be different on Monday)

soulman247

Last question

ok so National grid shares cost 898.67 (£8.99)

it pays a dividend of 14.71 pence per year, per share i own

55 shares that cost me £494.45
I get a dividend of 809.05p


Is this correct?

soulman247

Basically i want to no this info so i can buy shares only when i am gonna get a dividend return of around £500-£5000. Of course i will do my homework on the shares and see if there a good company first.

End goal to earn £11 Thousand from share dividends, not from one company but many

Fruit_and_Nut_Case

Dividends can change over time. If you get £50 this year there's no guarantee that you'll get £50 next year.

Mistermeaner

Dividends are not guaranteed and past performance is no guarantee of future performance. Also the likelihood of dividends is priced into shares so the more likely to pay out cost more initially.

While shares can be bought for income most are bought and sold for growth, with income generally being reinvested.

Have you looked into funds, rather than shares?

As you have money with which to buy shares I assume you are earning, the usual way to build wealth is to invest for growth while earning and look to convert your wealth into income once you stop earning - generally done by planning for retirement and using a pension.

Ifts

soulman247 wrote: »

it pays a dividend of 14.71 pence per year, per share i own

The 14.71p is the interim part of the National Grid dividend payout, they pay the final part of the dividend in August. For year ending 31-Mar-14 the dividend is 42.03p (forty two pence for each NG share).

so going back to my earlier post it would be:

0.4203 (forty two pence) X 55 (shares held) = £23.12

jimjames

As per above comments your strategy appears a bit strange.

Is there a reason you have such a specific target in mind?

I assume you're aware that you may be paid out a dividend but the share price could drop by far more.

Would it matter that your shares halved in value if you got the dividend amount?

ChesterDog

Read Jim's post, above, several times. It is very important.

When you buy a share that pays you dividends, it is like buying a machine that sits in your house and spits out money every so often.

That sounds great, but the machine costs money to buy, and it can go wrong. If you want to sell it, nobody might want to buy it unless you slash its price. The money you can lose on the cost of the machine can really easily be a lot more than it ever spat out for you.

Of course, the machine can go up in value instead. But there is a risk there that you need to consider.