Don't Always Believe What You See - Know Your Research Sources Accuracy

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Includes: DEO
by: RoseNose

Summary

If you own a stock- know how they pay you, be it quarterly, semi annually, monthly or even other.

Semi-Annual payments are often divided unequally by most often the foreign companies.

I will take you through my search for the correct dividend amounts, yield and payment dates for DEO.

Don't always believe what you see in many research documents and websites for your company's dividends and yield.

Recently I was trying to estimate my 2016 income. I was searching for the dividends and yields for many of my current holdings for 2015. It was a real struggle for the truth.

Many websites were accurate for the calendar year and some for the fiscal year and some not accurate at all.

Here is what I encountered for the foreign company Diageo (NYSE:DEO) located in Great Britain using SA Portfolio, Yahoo Finance, YF, and FAST Graphs, FG.

Stock SA Portfolio Yahoo F FG-2015 FG-2016
Dividend $
DEO 4.27 4.27 0.89 4.31
Yield % 4.2 4.08 3.2 3.2
Click to enlarge

Needless to say, this is all confusing. I know now after my research this is all incorrect. FG does come the closest for yield.

Here is where Yahoo Finance, YF, gets the dividends somewhat close. They are a computer, and show on the summary page the yield of 4.08%, which is wrong. DEO pays twice yearly in uneven payments. Many other foreign based companies do this as well. I believe YF used the last dividend payment to calculate the yield.

DEO pays the smaller payment in February / March, according to YF, the larger payment in Aug/Sept.

Here is how it all adds up for the last 3 years as shown in YF:

  • 2013 = $2.92 Paid as : Feb $1.127 + Aug 1.793
  • 2014 = $3.457 Paid as : Feb $1.299 + Sept 2.58
  • 2015 = $3.478 Paid as : Feb $1.301 + Aug 2.177

DEO stock price is $102.33. This price provides a yield of 3.4% using ~ $3.48.

I also did a search on the website: Dividends stocks pay. They at least come closer with 3.6%, which you can see from above is really closer to 3.4%.

They offer these dividends paid:

2015 = $3.414 = $1.277 + 2.137

Gee, now I am really confused, but getting closer to the truth.

The Diageo shareholder website , lists the dividends in British Pence…gee, I can understand nothing in pence.

They do reveal they pay the dividend split 40:60. Interim payment in April of 40% and final in October of 60%. Are the months different in Britain than the US? More confusion, YF said differently.

Okay, now I am going to my Scottrade account.

They agree with 3.34%, but still list SEMI dividend payment of $2.137 on the summary page.

Finally, I find, hopefully the truth for 2015 from my account page in Scottrade:

Paid to me per share on April 13th 2015 was $1.277, this agrees with Dividends Stocks Pay.

Paid October 15th per share was $2.1369. This is a total of $3.4139 for the year in US $ per share. Yipee! And these months of April and October even agree with the shareholder website, imagine that. It also agrees in the amount paid with the website Dividends stock pay.

Thank You for traveling with me, searching for dividends, and the CORRECT dividends and yield.

David Fish is owed a huge debt of gratitude for maintaining his Dividend Payer streak website.

It is a real job to do it, and we all get it for FREE!

DEO is now a challenger at 6 years.

His results are showing a yield of 3.19%, same as FG.

I am going with what I got paid which is the $ 3.41 and a yield of 3.3%.

Gee, I think that is correct. I thank you for traveling with me in the search for truth for the Correct dividends and yield. It can be a challenge. I think I won. I wait to get paid and then I know the truth.

Happy Investing.

Disclosure: I am/we are long DEO, DIAGEO.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.