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# AT&T, Inc. Message Board

• jwaltz234 jwaltz234 May 7, 2014 9:33 AM Flag

## Stock Price vs. Dividend

If the stock price reaches \$50 within 2 years as some predict, is there a way to calculate what the dividend would be at that price ?

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• He might mean what the percentage Dividend will be. i.e. currently it is about 5% with the stock at ~ 36. If the stock is at 50 and the divvie increases its typical .01/year , you can do that calculation. not sure it means or proves much.

• jwaltz -- You usually seem brighter than this. Dividends are not a function of the stock price. It's the other way around.
T has increased its January quarterly dividend by 1 cent every year since 2009.
Jan 2008 = \$0.40
Jan 2009 = \$0.41
Jan 2010 = \$0.42
Jan 2011 = \$0.43
Jan 2012 = \$0.44
Jan 2013 = \$0.45
Jan 2014 = \$0.46
Notice a pattern?
Jan 2015 = \$0.47?
Jan 2016 = \$0.48?
\$0.48 x 4 = \$1.92 annual indicated dividend, which, if the price is \$50, is only a 3.84% yield.
If the market requires a 5% yield the price would be only \$38.40.