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  #1  
Old 25th December 2010, 06:33 PM
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Default Dividend Per Share Calculation Method



1) A company declared cash dividend 10% and stock dividend 10%.

Then how can I calculate dividend per share where face value 100 dollar and market price 1172.50 dollar?

2) A company declared stock dividend 10%.

Then how can I calculate dividend per share where face value 100 dollar and market price 1172.50 dollar?

Please reply this sir.

That I want to calculate Warren Buffet method properly.
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Old 26th December 2010, 07:55 AM
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Cash dividend is the dividend in the form of cash. In the above example, you will receive 10% of face value, i.e. 10% of 100 = 10 rupees per shares. It will credited to your linked back account / you will receive a check for the same.

Stock dividend is same as bonus share. 10% of Stock dividend means, you will receive 10% of share what you have already. For above example, you will receive 1 share for every 10 shares held by you.
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Old 26th December 2010, 07:22 PM
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Thanks sir.

But I want to know that in Buffet calculation only 1 column is DPS (dividend per share).

In column I want to put DPS but Buffet example Nike declared only cash dividend in previous years.

But I want to know that- Nike face value 10 rupees and market price 40 rupees if Nike yearly declare 10% cash and 10% stock then DPS (dividend per share)?

and this DPS result need for calculate payout ratio?
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Old 21st February 2011, 02:57 PM
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Yes you need to add this to DPS - this money goes out of the stock price, so for future value of the stock you need to reduce this money like a normal dividend. This dividend will add to the future earning of the stock.

Hope it helps
Andre
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