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what dividend would this give please on shares have no clue

(26 Posts)
DrasticAction Wed 19-Apr-17 21:37:59

what sort of dividend would £20,000 worth of shares give?

what sort of dividend would £3,000 worth of shares give>?

How does it work? Thanks

nauticant Wed 19-Apr-17 22:45:27

Different companies have different dividend amounts. Although some companies have high dividends these aren't guaranteed so you could buy shares to get a 6% dividend and suddenly it's cut to 3%. Also, buying shares in one company can be risky because if something goes wrong with the company the value of shares can go down. If you're unlucky, both things could happen at the same time.

To deal with these risks it's common to buy income funds. A return of 4% would be achievable without going for anything too exotic. Again though, if the market takes a downturn your investment, the capital, might end up worth less.

DrasticAction Thu 20-Apr-17 10:05:21

Ok have inherited these shares so there is potential here for dividend payment of a few hundred pounds?
Do they get paid at different times or round tax year?

kath6144 Thu 20-Apr-17 10:23:41

As others have said, it depends on the company.

Why dont you do a little research on the internet on each company that you have inherited shares in?

For each company, you should be able to find dividend dates (usually twice a year, 6 months apart) and what the previous years dividends were (per share value, then you can multiply by your no of shares)

As pp said, it varies considerably, and dividends cannot be guaranteed. Some of my shares give pence per dividends, some pounds.

nauticant Thu 20-Apr-17 10:34:48

Maybe. But some companies pay little or no dividend. If dividends are paid some companies pay once a year, some more than once. The payment dates vary from company to company.

UK companies? Would something like this help?

www.dividenddata.co.uk/

Don't feel obliged to keep the shares.

DrasticAction Thu 20-Apr-17 10:48:17

Thank you - when you say "company" do you mean the company they are in - ie they are in Unilever - which they are or the company that holds them? Which is computerserve or something?

DrasticAction Thu 20-Apr-17 10:52:38

ok, so it looks like next payment is june 7th and from old data I have this figure -

2016 109.03p

So does that mean - you get £1.9 per share in a dividend?

Or you just get £109 pounds no matter what you hold?

DrasticAction Thu 20-Apr-17 10:54:38

and this?

09 February 2017 15 March 2017 Quarterly 27.68p GBP Paid

darceybussell Thu 20-Apr-17 11:02:16

That will be the pence per share. You need to look at the company you actually hold the shares in so if that is Unilever then look at them.

user1492458803 Thu 20-Apr-17 11:04:23

www.unilever.com/investor-relations/dividends/

www.unilever.com/investor-relations/dividends/dividend-history-and-reinvestment/

109.03p looks like the share price to me, so if you sold your shares, that's what they're worth each.

According to their website: Q1 2017 30.21p per ordinary share in Unilever PLC paid on the 7 June 2017.

user1492458803 Thu 20-Apr-17 11:05:33

£9063 if the shares are held in Unilever PLC, there are other divisions.

DrasticAction Thu 20-Apr-17 11:08:04

OK so it would be 27 p x 502? for a quarter dividend payment or - something in that region?

So about £135 dividend payment for that quarter?

DrasticAction Thu 20-Apr-17 11:09:09

The current price per share is 48 euros.

nauticant Thu 20-Apr-17 11:09:10

It seems that Unilever dividends are paid quarterly, so four times a year, with the most recent payment being 27.68p per share for the last quarter of 2016 (but payable in 2017).

If that means you get £1.09 per share per year (at least this year, it could fall in the future), then the total annual dividend amount would be the number of shares multiplied by £1.09. Do you know how many shares you have?

DrasticAction Thu 20-Apr-17 11:12:26

502

nauticant Thu 20-Apr-17 11:18:34

If you've got about 500 shares, and the annual total dividend is about £1 then that's around £500 per year. That would be a bit over 2.5% yield on £20,000 (sort of like interest). Better than the bank but so long as the share price doesn't fall and/or the dividend payments aren't reduced by the company.

DrasticAction Thu 20-Apr-17 11:23:37

Ok so thats quite good - but I have to sell them anyway to pay of debts of estate.

Just wondering if it was worth waiting till next payment to do so....

From my Lay eye it seems unilever shares are quite high at the moment so hopefully if they hold for a few weeks would be a really good time to sell them?

yecartmannew Thu 20-Apr-17 11:27:39

Share prices often start to go up before a dividend payment is due and then drop back down a bit after.

This is to reflect the fact that if you buy them before a payment you will get an immediate benefit, if you buy them after you will have to wait longer for any payout.

So could be swings and roundabouts really.

nauticant Thu 20-Apr-17 11:31:59

yecartmannew has it. The dividend doesn't come "free", it typically comes at the expense of the share price which drops by a similar amount.

If there are external circumstances requiring sale of the shares, just sell them when you need to. You'll do your head in trying to decide on timing, especially with 8 June coming up.

DrasticAction Thu 20-Apr-17 11:36:33

Oh yes - of course....

there are quite a few debts to pay and we need every ££ we can get.

flowers to all those who have walked me through this brand new stuff,

is there anything else I need to consider before selling? I know company takes 1% over all fee of all shares sold + £35, I have to get them in my name first though...

I wonder if its worth selling all of them? or keeping some back or not worth hassle?

nauticant Thu 20-Apr-17 14:42:57

Ahh, at that point it's purely down to your personal financial circumstances. A lower risk approach would be that any excess cash can go into paying off part of a mortgage (if possible). An alternative to this is if there's a pension, sacrificing some salary while living on the proceeds of the share sale. This can have good tax advantages. Or other things.

DrasticAction Thu 20-Apr-17 16:51:14

I have no pension myself I was thinking of starting one up SIPP and putting any left over from paying estate debts in that.

i would do mort too but its not in my name so until is it - dont want to add cash to it. ( we are married though) I am a sahm and no salary. ( at present)

innagazing Thu 20-Apr-17 20:12:05

Drastic Action
You may want to be aware that the shares go 'ex dividend' on the 4th May. This means if you are holding the shares at the close of business on that day, then you are entitled to be paid the dividend on 7th June.
The day after the ex divi day, the share price usually falls by a corresponding amount of the dividend payable.
You may need to check how the dividend is paid out too. It could be that it's directly reinvested into the existing share holding ie that more shares up to the value of the divi are bought and added to the number of the existing shares, or that the divi is paid into a nominated bank account owned by the shareholder. (so, if they are still in the name of a deceased person, the payment could be paid into their bank account, which may be closed already)

DrasticAction Thu 20-Apr-17 20:32:01

ok thanks Inna - its been a real learning curve this morning!

I wont be able to sell them before 4th May so will still be holding them, will ring them tomorrow and ask how dividend gets paid.

HOwever I am guessing shares go down at election time so probably good to sell them before then if I can?

nauticant Thu 20-Apr-17 20:53:45

You mentioned computerserve earlier. You might have meant computershare the company registrar of Unilever. This is the company that does the admin relating to the ownership of Unilever shares. I'd phone them although if the shares are not in your name getting information out of them will depend on whether you are authorised to receive it.

With this election I expect share prices to increase slightly as we approach the day, for there to be a small boost on the day assuming a Tory win, and then to fall back. Unless of course something unexpected happens.

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