After reading through so much information about dividend stock, now let’s have a quick test! What if I say stock ABC that you are holding will give out 32% dividend? What does this mean and how much money are you exactly going to get? Please be noted that this 32% dividend does not mean that your dividend yield will be 32%.

Today, we will be looking into this matter. Normally, there are two methods in announcing the amount of dividend payment.

The first one is easy. The company will just announce a dividend payment in terms of currency. As an example, take a look at Digi.com Berhad (DIGI), which announced a dividend payment on the 5th February 2016. It was reported that “Fourth interim dividend of 4.9 sen per ordinary share ...”. With this, it means that DIGI is giving out 4.9 cents per share. If you have 1000 share of DIGI, then you would be entitled to get RM49. The second method is more troublesome, because you will need to calculate out the exact amount yourself. It involved one more step, which is to find out the par value of the stock. This type of dividend payment is reported in terms of percentage. The exact amount of dividend can be calculated as below:

Dividend per share = percentage * par value

Total Dividend = percentage * par value * number of shares

Example 1: Public Bank Berhad (PBBANK).

On the 3rd of February 2016, the company announced a dividend of 32%. Now using the equation earlier, we could calculate out the dividend being paid out per share.

Dividend per share = percentage * par value = 32% * RM1 = RM0.32

If you have 1000 share, then the total dividend would be RM320.

Example 2: Poh Huat Resources Holdings Berhad (POHUAT)

It announced giving out dividend on the 21st of December 2015 with a percentage of 4%. So how much is it in total?

Dividend per share = percentage * par value = 4% * RM0.50 = RM0.02

If you have 1000 share, that would be RM20 for you.

After looking at these two examples, you might wonder how you could find the par value of a stock? Don’t worry, just google it, it is available in the internet. Or if you take a look at these few links below, which are the official announcement at Bursa Malaysia website, you will also notice that at the most bottom part of the page, it will state the par value of a company. So actually, it saves your time from finding it online.

This is it. Let's look for more dividend stocks!