As we continue to explore topics on personal finance, we will explore more concepts related to equity and investments for the everyday investor. These should assist anyone in their investment journey.

Dividends — A dividend is simply a company paying a share of its profits to its shareholders. An example is the case of Mailpac’s $0.09 dividend with the record date last Friday, March 25 and payment date on April 8. All this means is that you get paid $0.09 for every share you own at the record date. Mailpac’s stock price was $2.93 on announcement. It paid a total of $0.14 in dividends over the last 12 months which means that the trailing 12-month (TTM) dividend yield was 4.78 per cent. All this means is that for every $100 invested, you’d receive $4.78 in dividends.

 

Carreras Limited has the highest TTM dividend yield on the Jamaica Stock Exchange (JSE) at 9.87 per cent. Sterling Investments Limited (SIL) has the highest United States dollar TTM dividend yield on the USD market at 4.84 per cent. Though these dividend yields are quite high, this is the gross yield which doesn’t account for withholding taxes. Dividends paid by Jamaican companies to Jamaican residents are taxed at 15 per cent while capital distributions are taxed at two per cent. Thus, 10,000 units of Carreras from its $0.23 payment last Thursday wouldn’t result in you receiving $2,300, but only $1,955.00 net. In the case of SIL, it is a St Lucian international business company with the Caricom double taxation treaty resulting in Jamaican/Caricom shareholders not getting taxed on their dividends. Thus, 10,000 shares at US$0.00051 would result in the gross and net dividend payment amounting to US$5.10.

https://www.jamaicaobserver.com/sunday-finance/investment-facts_247204