Dividends calculation

Ciprico

Thrugelmir said:

123mat123 said:

I hope someone could clarify this
Say a company's shares were valued at £100 and they paid £5 dividend. (ie 5%)
The share price collapses to £50
All other aspects being equal, would the dividend remain at £5,  (now 10%),
or follow the collapse so remain at 5% of £50 =  £2.5
Thanks 

As a rule of thumb. The higher the yield on offer rises. The less likely the dividend on offer will be maintained (as far as the market is concerned). 

Shell is a company that appears to be suffering. A fall in the prices that are obtained in it's core markets (oil , gas, chemicals and renewable energy) means that it'll find it harder to concurrently pay dividends, reduce debt, fund capital projects and conduct share buybacks. The virus threat merely compounds the situation futher. 

It was in fact in relation to Shell I asked the initial question....I know "the forum" likes trackers, and looking at the recent history of my Shell shares trackers do make sense - but 8% tax free(ISA) is pretty tempting...