Lux Investing

what does it means when x% dividend is announced?

What does it means when 35% dividend is announced. If I had invested 1000$ in a mutual fund and if they announces 35% dividend this year, does that means they will pay out 350$.

Public Comments

1. yes sure
2. When they announce a dividend, it is a certain amount of money to be paid on a certain day. But it is only paid to shares that are registered by a certain date named before the dividend day. After the registration day cut-off, the shares traded are not entitled to a dividend and are said to trade X Dividend The company never pays a percentage dividend as that would be an amount compared to share price that the company has no Idea what the share price will be in any given minute. And dividends are usually in the range of 0.5% - 6% /year divided by 4 for each dividend period. This % is just a calculation based on present share price compared to dividend paid, the % could seem different tomorrow but the dividend paid is the same, only share price varies.