Builder's FirstSource (Nasdaq:BLDR), for example, has a whopping dividend yield of 42.53%, but the company hasn't paid any dividends for years.
2007-02-09 17:54:29 · 5 answers · asked by InvestorMan 1 in Business & Finance ➔ Investing
I am sure there are other posters more knowledgable than I am on the topic. But I will give it a shot...
The dividend yield is calculated by taking the annual declared dividends per share and dividing it by the price per share.
The operative word is "declared." A corporation's board may declare dividends, but not distribute them - presumably due to insufficient cash.
2007-02-09 18:29:22 · answer #1 · answered by Beni 3 · 0⤊ 0⤋
You can't have a dividend yield if you're not paying dividends. I don't know where you got your information about the 42.53% yield. This may be an old number. Currently, Yahoo! Finance shows the the Div Yield for BLDR is N/A, which is consistent with a company not currently paying a dividend. You can find the financials for BLDR at the link below.
2007-02-09 19:26:32 · answer #2 · answered by rkuder25 2 · 0⤊ 0⤋
Are you sure you are reading it correctly?
They have to pay a dividend in some form to have a dividend yeild.
It might be possible to give a stock dividend (that is they give so much extra stock, depending on the amount you hold.)
That would theoretically be a dividend even though it would drop the value of all it's stock by a big amount.
I would contact the management or the public relations officer of the company and find out.
Sounds not good to me.
2007-02-09 18:29:04 · answer #3 · answered by bob shark 7 · 0⤊ 0⤋
They might have had a one-time special dividend. If you want to find out if a company has offered a dividend recently, just click on the following link, and enter your stock symbol:
http://www.top10traders.com/Dividends.aspx
2007-02-10 02:15:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
YAHOO FINANCE SHOWS A DIV. OF N/A. NO DIV NO YEILD
2007-02-09 22:18:36 · answer #5 · answered by benchwarmer 2 · 0⤊ 0⤋