V
NTDOF(.pk)
I decided to buy Nintendo stock because I think it is undervalued (by at least 500 dollars) . But then when I went to Bloomberg Businessweek, it showed it had a 400 dollar dividend. Now since this stock is at 238 at the time of writing, how can it pay that high of dividend, and do it for over 5 years now (since it was listed in 07') ? And not only did it say that on BB, but alos on Fidelity. So if anyone can explain how this is the case, please reply.Thanks
Vivo
I
Replying to #1
My only guess is because of a stock split. Stocks tend to do a stock split to normalize the price. Let's say the original buy price is $500. They'll split the price down to $250, and double the number of shares.
If this isn't the answer, then I'd like to know as well.
perhaps that was the case, then that also brings up the point that this is not the only stock with that high of dividends. Delek Group (Dlkgf(.pk)) has a 7000 dollar dividend, and KDDI (Kddif(.pk)) which has a 15000 dividend. So it doesn't seem like it is a weird occurance.
