Q: Hi 5i,
With reference to your response to Les's question July 08 you say :"The criteria is pretty intense if one is looking for 4% dividends and 10% appreciation. There is nothing in this category that would not come with significant equity risks. VIU qualifies on historical numbers, trades in Canada, is international, and has a yield of 5.02% indicated and five year return 10.22%. "
How do you calculate or find these numbers?
My broker shows dividend at 2.39 % (.95 cents)
Does the annualized 5 yr return of 10.22% include dividend or reinvestment of the dividend.?
thx
With reference to your response to Les's question July 08 you say :"The criteria is pretty intense if one is looking for 4% dividends and 10% appreciation. There is nothing in this category that would not come with significant equity risks. VIU qualifies on historical numbers, trades in Canada, is international, and has a yield of 5.02% indicated and five year return 10.22%. "
How do you calculate or find these numbers?
My broker shows dividend at 2.39 % (.95 cents)
Does the annualized 5 yr return of 10.22% include dividend or reinvestment of the dividend.?
thx
5i Research Answer:
The yield and other info come from Bloomberg, but we confirmed the return on the company's website. It is total return including dividends reinvested. On the yield, it depends on calculation. Because the distribution varies, one can take the recent dividend (48.8 cents) and annualize it, which is what Bloomberg has done, or take the dividends paid in the last year. The March dividend, for example, was much lower, at just 8.5 cents. So there is a big variability in looking at historical dividends vs current dividends. Looking at the past two years, the actual dividend paid has been all over the map, from a low of 5c to the recent high, but with many payments above 40c as well.