Highs, Lows, Yields And Cover

Highs, Lows, Yields And Cover

Highs, lows, yields and cover

*11gb/Low means the highest and lowest price reached for each particular share (or stock unit) during the year up to the date of the newspaper's publication, or if it is early in the year (January, February and March), the figures will include those of the preceding calendar year.

High/low figures are adjusted to take into account all data such as: Scrip issues, rights issues, par value division. If such adjustment is not made on these figures, a false picture is given to the reader. Example: A company's share is priced at SOs, its high/low is 60/40. If a one-for-one scrip issue is allotted the price is immediately halved on the Stock Exchange and the share price of 50s then appears in the Press as 25s xc. This means 25s without the scrip (capitalisation) issue. After a few days the xc is no longer stated. The high/low figures become 30/20. If this adjustment to the high/Low figures is not made and high/low figures still appear as 60/40 with the current price at 25s then a distorted picture is given, since 25s is below the lowest figure of £40 given.

Similarly, if the company decides to divide the par value of its £1 shares into denominations of 5s because of the shares' high market price, say, 120s (to increase their marketability) then the high/low figures are adjusted accordingly, e.g.:

Dividend % is the dividend expressed as a percentage of the par value (nominal or original value of the share). This is expressed in gross terms, i.e., before deduction of income tax.

Times covered, also called 'earnings cover' or dividend cover', is the earnings per share divided by the declared dividend, if dmes' covered' is 2, this means that an amount equal to the dividend is retained by the company (i.e., amount of earnings per share is twice the amount of the dividend, or the dividend is 2 'times covered' by earnings).

Gross yield % is the dividend expressed as a percentage of the current market price, i.e., the income on the cost of investment to you, or what your money will yield to you. Gross means before deduction of income tax.


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