I'll use Rockwell Automation (ROK) as an example for my question. Their last trade was $63.49. This means that's how much someone just bought one share for right? The dividend is 1.16 which means that if I only own 1 share of Rockwell Automation, I will get $1.16 next quarter when they announce their profit or whatever? I'm completely new to this and I need to follow 3 companies for a business project in college. So, I have a lot of questions I'm sure. Thanks for your help!
2007-02-08 08:03:16 · 3 answers · asked by Katie L 3 in Business & Finance ➔ Investing
First of all, the closing price is simply the last sale for the day...people can buy throughout the market day, and the price will fluctuate throughout the day.
Second. The dividend that you see in the quote is the historical dividend for the last 12 months. At the end of each quarter, the company will compute it's profits, and announce an appropriate dividend. These future dividends may be more or less than the historic rate, depending on profits. If the company does badly, it may even suspend the dividend. So you have no guaranteed income. When selecting a dividend paying stock, it's a good idea to research it's dividend history over several years. That way you can tell whether they have a history of regular dividends, and whether the dividends are increasing.
2007-02-08 11:47:48 · answer #1 · answered by anywherebuttexas 6 · 1⤊ 0⤋
Yes, you will receive $1.16 each quarter for each share of ROK that you own. The Board of Directors will announce the dividend each quarter about a month before it is payable.
Yes I am wrong. The dividen amount you see when you look up the stock's quote such as ROK is the tearly dividend per share. So you divide that amount by 4 to get the amount paid out in dividends per share each quarter. Sorry about that.
Dividends are supposed to be fairly stable and reliable. Look at the pages in the newspaper stock listings for a small table of stocks (companies) that have announced a change of dividends either upward or downward depending on their financial condition.
2007-02-08 08:12:51 · answer #2 · answered by KingGeorge 5 · 0⤊ 0⤋
$1.16 is the "annual" dividend rate for ROK based on the last quarterly dividend of $0.29/share. So expect $0.29/share in the next Quarter.
For the next 12 months you should get at least $1.16. Maybe more if they raise their dividend again (but I wouldn't expect them to since they have gone more than a year between increases in the past).
2007-02-08 08:15:35 · answer #3 · answered by random_market_investor 2 · 1⤊ 0⤋