SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend investing for retirement

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: chowder who wrote (3169)12/31/2009 4:46:50 PM
From: Debt Free  Read Replies (3) of 34328
 
The annual dividend is $2.80 which gives me a 10.5% yield on my position where if someone bought today, their yield would be 7.7%.


From the perspective of your original investment I am okay with this thinking. I think that it shows that you made a good investment. However it seems to be a misleading way to look at it from a perspective of where you are today. For instance if the yield is currently 5% and your effective yield is 10% (because of your purchase price) the yield you receive is only 5% of your current value. Therefore if you look at it from the perspective that it is yielding 10% then you are potentially overstating what you are receiving.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext