# Calculating Dividend - How do they do it?



## shady (4 March 2009)

Gday all, first post here but have been trolling for a while.

Having been out of trading/investing in stocks for a few years years now (lucky me) I'm back in the hunt for a long term investment plan.

I've been logging on to my comsec account to do some research and cant quite get the figures to match up.

For instance
I've copied this from the comsec website

I assume these figures are calculated on the previous closing price of $28.29 as listed on comsec

INCOME	
Dividend yield	8.9%
Franking	100.0%		
Tax adjusted dividend yield	7.0%
Dividend stability	100.0%

Earnings and Dividends Forecast (cents per share)
..........2008....2009....2010....2011
EPS.....344.4...289.0...305.0...373.1
DPS.....266.0...240.0...250.0...268.0

Dividend yield is DPS/price = 266/2829 = 9.4%
Tax adjusted yield, I'm assuming you just reduce the dps by 30% company tax rate (being 100% franked) and then divide by price
=(266*.7)/2829 = 6.58%

These numbers don't match the yield of 8.9% and tax adjusted yield of 7% that's listed on the comsec site. I can assume that the tax adjusted figure isn't as simple as taking 30% off the DPS and would included all sorts of rebates/deductions that CBA have claimed to arrive at the tax adjusted yield.  

Can someone tell me what I'm doing wrong? 

Cheers


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## alphaman (4 March 2009)

Click the dividend yield link, you will see Comsec's definition being the average of past and forecast yield. In this case the average of 2008 actual and 2009 guesstimate dividends.


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## shady (4 March 2009)

Ahhhh....

Thank you


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