How to work out expected dividend payout

neildt

Say I have 1,480.256 units in a fund, how do I work out the expected dividend payment if the yield is 1.10%. The value is £3,845.56 and the cost £3,516.40

bowlhead99

The yield is saying that the last time they paid out dividends, the dividends equated to 1.1% of the value of the fund.

So if your share of the fund's value has been worth between £3500-£3850 you might expect to get around £38.5 to 42.5 of dividends.

However what you will actually get depends on how much income they actually received from their investments. The investments are valued at whatever their market prices are. The investments (e.g. shares in a whole bunch of companies) don't each pay out a defined fixed percentage of their market value at a given date. They pay out whatever amount of money they have spare from their business activities that they don't want to keep in the business or use for buybacks, expansions or whatever.

So the 1.1% will fluctuate over the years. Just because the unit price goes up (because the market is happy to pay more to own those particular assets than they did before) it doesn't mean the dividend income received will go up by the exact same proportion.

On your numbers above, you might expect ballpark 40 quid. But if the investment mix in the portfolio or general market sentiment has changed a bit, your investment value might change without the dividend per share changing, so the yield rate would change for next time and you might get something different than 40 quid.

badger09

bowlhead99 wrote: »

The yield is saying that the last time they paid out dividends, the dividends equated to 1.1% of the value of the fund.

So if your share of the fund's value has been worth between £3500-£3850 you might expect to get around £385 to 425 of dividends.

However what you will actually get depends on how much income they actually received from their investments. The investments are valued at whatever their market prices are. The investments (e.g. shares in a whole bunch of companies) don't each pay out a defined fixed percentage of their market value at a given date. They pay out whatever amount of money they have spare from their business activities that they don't want to keep in the business or use for buybacks, expansions or whatever.

So the 1.1% will fluctuate over the years. Just because the unit price goes up (because the market is happy to pay more to own those particular assets than they did before) it doesn't mean the dividend income received will go up by the exact same proportion.

On your numbers above, you might expect ballpark 400 quid. But if the investment mix in the portfolio or general market sentiment has changed a bit, your investment value might change without the dividend per share changing, so the yield rate would change for next time and you might get something different than 400 quid.

Dividend £385 - £425 on fund value £3500 - £3850:shocked:

benbay001

I think you mean £38.50 - £42.50

bowlhead99

benbay001 wrote: »

I think you mean £38.50 - £42.50

Hey I'm an optimist .

Now edited.

Linton

Yield is a calculated historic annual value possibly covering several dividends paid over the past year.. It does not necessarily tell you anything about a future dividend. A future dividend is generally announced a short time before the share goes ex-dividend in terms of £/share. The share price is irrelevent.


To predict a future dividend you could multiply the price by the yield, and divide by the number of dividends in a year. Another approach is to look up the value/share of the same dividend last year. Most steady dividend payers pay much the same £/share, as falls in the dividend are regarded by the market as a bad sign.

ColdIron

To the OP, don't forget that many funds pay their dividends quarterly, some bi-annually or monthly as well as annually so each payment might be half, a quarter or one twelfth of the yearly amount, Manage your expectations

neildt

Linton wrote: »

To predict a future dividend you could multiply the price by the yield, and divide by the number of dividends in a year. Another approach is to look up the value/share of the same dividend last year. Most steady dividend payers pay much the same £/share, as falls in the dividend are regarded by the market as a bad sign.

Thanks. For example, this fund MAN GLG UK INCOME PROFESSIONAL CLASS - ACCUMULATION (GBP), the Historic Yield is 5.17%.

How would I find out what the dividend yield will be for the Ex-dividend date 1 January 2020

bowlhead99

neildt wrote: »

Thanks. For example, this fund MAN GLG UK INCOME PROFESSIONAL CLASS - ACCUMULATION (GBP), the Historic Yield is 5.17%.

How would I find out what the dividend yield will be for the Ex-dividend date 1 January 2020

You could go to https://www.trustnet.com/factsheets/o/zj86/man-glg-uk-income

And look at the dividend section and note that the dividend which went ex div on 1 Jan with a payment date of 31 Jan is 1.124 per share. Multiply that by the amount of shares you had, and that's the amount of income you will have been allocated for your holding.

Obviously as it's an accumulating class they won't be sending you the dividend.

ffacoffipawb

bowlhead99 wrote: »

You could go to https://www.trustnet.com/factsheets/o/zj86/man-glg-uk-income

And look at the dividend section and note that the dividend which went ex div on 1 Jan with a payment date of 31 Jan is 1.124 per share. Multiply that by the amount of shares you had, and that's the amount of income you will have been allocated for your holding.

Obviously as it's an accumulating class they won't be sending you the dividend.

Not an easy page to navigate, eg cannot find dividend info for Lindsell Train Uk Equity, the dividends tab is missing for that fund.

bowlhead99

ffacoffipawb wrote: »

Not an easy page to navigate, eg cannot find dividend info for Lindsell Train Uk Equity, the dividends tab is missing for that fund.

The Trustnet site is not bad for functionality but not as good as it used to be since they restructured the layout and hid some bits away. And they have some resource-hungry scripts which make it slow and clunky to use on my web browser, especially on my cheap smartphone's implementation of Chrome where it frequently stalls while loading.

Trustnet is a subscription service from FE. By subscription I mean it is free to us as the end user (supported by advertising etc) unless you want their professional product that IFAs might use, but fund managers pay them to have their data included and published. The data and documents for a lot of funds can be found there, but for non-subscribing funds, they only have the basic public domain information such as published NAVs, and don't bother to try to manually dig around for extra bits of info.

Presumably Lindsell Train's own site has the info you might want, or its on some platforms that they are in bed with, like Hargreaves Lansdown; so they don't pay for a deep relationship with FE.

The other major free resource for funds is Morningstar.co.uk; they and trustnet present the information differently and have different tools for comparing funds.