Q&ACategory: Dividend StocksQAF – Calculating Historical Dividend Yield
Amy Ang asked 2 months ago
Hi, I am practising calculating historical dividend yield. And to ensure that I am doing it correctly, I have chosen QAF so that there is a model answer for me to check against :-)
  1. For the share price, which one do I use - Open, High, Low, Close or Average of the day ? For my calculation, I used Avg Price.
  2. The dividend is distributed on 3 May 2018 (0.04) and 29 Aug 20 18 (0.01) for FY2017. Do I used  0.05 as the DPS to calculate the dividend yield from 2 Jan 2018 to 31 Dec 18 or 3 May 18 to end Apr 19 ?
  3. Based on my calculation (i used avg share price for the day), the historical high yield is on 11 Dec 18 ($8.93)and 23 Mar 20 (8.06%). This is different from that in QM Pro Watchlist where the Historical High Yield is in Q12020 of 8.1% ($0.62). Where did I go wrong ?
  4. As of last Fri (6 Oct), the dividend yield is 5.95%. I guess I will have to wait longer to pick up this stock. 
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1 Answers
Rusmin Ang Staff answered 2 months ago
Hi Amy, Good to see you're trying out! Let me answer your questions below:
  1. For share price, you should use Closed price which isn't adjusted for any dividends paid.
  2. For DPS, you can refer to the annual report of QAF. They usually state the full year dividends and in the case of QAF, Chairman's statement provides the data. 
  3. We do not use average price, that's why we could've get different answers. We usually use two points of low price (major and mini crisis) and high price for mini and major bull run. In the case of QAF, you can simply invert the yield by dividing it with 5c dividend to get the share price we used for calculation since QAF has been paying the same 5c dividend for long time. Alternatively, you can look at the historical share price of QAF and pinpoint the high and the low price. You can simply follow the estimated date that we've provided in the table :)
  4. It's not expensive or cheap but insider (largest shareholder) has been buying. Let's hope this stock won't get privatised!