All about annualized yield
I got a few questions from readers yesterday about how I calculated the annualized yield of the OceanaGold PH [OGP 13.58, up 0.7%; 309% avgVol] Q2 dividend [link] so I thought that I would walk everyone through how I calculate annualized yield, why I do it, and the benefits and limitations of using annualized yield generally.> First, the background: OGP declared a $0.0066/share Q2 dividend out of its free cash flow for the period. Since OGP listed on May 13 and Q2 ends on June 30, the dividend was only sourced out of the free cash flow from this period. Inclusive of May 13th and June 30th, the period is 49 days in length.
