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Investment update: Medibank Interim Dividend March 2017

Back when Medibank was first listed on the ASX (1st Dec 2014), I picked up 1000 shares (the minimum you could buy) at $2 a share because I didn’t need to have a trading account to buy them. I’m not certain they were the best buy, but they were my first personal foray into share investing (Eli had some AFIC shares already).

The current payment rate per share was AU5.25c per share, so I came away with a tidy $52.50. This consisted of

  • Franked Amount $52.50
  • Franking Credit $22.50

Now, I am told that Franking is the best thing I should have going on with my shares, and it turns out these must be fully Franked! Who decided it would be called ‘Franked’ after all?

Unfortunately, this dividend rate has dropped from 6c a share in Sept 2016, but up from the 5c from March 2016. The other payout was 5.3 cents in Sept 2015. The first year there were no dividends, but I didn’t need to pay a brokerage fee either.

Can anyone tell me how to make this all make sense in terms of dividend percentage yield? I’m really put out that there is no automatic reinvestment scheme and that I haven’t gotten the chance to buy additional shares. Maybe in the future? I really don’t understand how these share things work, but so long as it is paying me dividends, I can’t be too unhappy right? Google tells me…

  • Dividend Yield = annual dividend per share / stock’s price per share

The trade price today is AU$2.84, and the payout was 5.25c a share this time, and 6c last time. So… that’s a yield of 0.1125 / 2.84 = 3.96%. Unfortunately that percentage is lower than the interest on my mortgage, but the share price has gone up. Also, I think this is my first source of a ‘passive income’, so I find that pretty exciting!

How about you? Did you jump on the Medibank bandwagon?

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