What Is Dividend Yield?
Dividend yield is a measure of the amount of cash flow an investor will receive from a stock investment. It is typically measured as a percentage of your total investment. Income investors who are not interested in capital gains or long-term earnings consider dividend yield as return on investment metric.
What is Dividend Yield Used for?
Dividend yield in most cases is an indication of how much an investor is earning for each Naira invested in a company. Investors widely use this ratio in conducting trend analysis. Past dividend yield ratios are usually factored into to decisions on whether to invest in a company or not. Dividend yield is one of the most important factors for investors seeking long term investments and a consistent return every year. Dividend yield also helps in making a comparison of other investments, like debentures, Govt. securities, money market instruments etc.
Draw Back of Dividend Yield
Dividend yield is affected by the market price of shares such that when the market value or price of a share fluctuates, dividend yield ratio gets adjusted accordingly. More importantly, dividend yield as a measure of investment return becomes is useless for companies that do not pay dividends to shareholders.
Below are the dividends declared so far in 2016 in Nigeria as well as their corresponding yields.
|Stock||Dividend Per Share||Bonus||Closure of Register||Payment Date||Dividend Yield (%)|
|Vitafoam Plc||25 kobo||Nil||15th - 19thFebruary 2016||14th March 2016||5.73%|
|Forte Oil Plc||345 kobo||Nil||18th - 21st April 2016||29th April 2016||1.18%|
|Nigerian Breweries Plc||360 kobo||Nil||3rd - 9th March 2016||12th May 2016||3.67%|
|Greif Nigeria Plc||60 Kobo||Nil||22nd - 24th March 2016||6th May 2016||6.10%|
|Dangote Cement Plc||800 Kobo||Nil||11th - 15th April 2016||21st April 2016||4.76%|
|Africa Prudential Registrars Plc||43 Kobo||Nil||23rd - 29th March 2016||13th April 2016||13.15%|