Coming out with all the headlines surrounding Megawide's [MWIDE 6.70 unch] board meeting and stockholders meeting was the news that the company had declared cash dividends on all three of its preferred shares series: a P1.4375/share dividend for MWP2B [MWP2B 101.80 0.99%], a P1.1875/share dividend for MWP2A [MWP2A 100.20 unch], and a P1.75625/share dividend for MWP [MWP 101.00 unch].
The first two, MWP2A and MWP2B have the same record date and payment date (August 5th and August 27th, respectively) , while MWP’s record date is August 9 and its payment date is September 3.
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Similar to what I do with the REIT dividends, we can use the most recent dividend for each series to calculate the “forward dividend yield”, which is a method to come up with a quick and rough estimate of what the annualized dividend returns would be, expressed as a percentage of the most recent stock price. Since MWIDE pays out regular dividends quarterly, we get this figure by multiplying the most recent dividend amount by the number of periods in the year (four), and dividing that by the stock price.
That gives a forward dividend yield of 5.6% for MWP2B, 4.7% for MWP2A, and 6.9% for MWP. Dividends are usually pretty dry news, but I thought this might be a great way to see how the forward dividend yield calculation can help an investor gain a quick appreciation for the significance (or insignificance) of a particular dividend.
Just remember: the forward yield changes inversely to the price. As the price of the stock goes up the forward yield goes down.
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