Value if div & share price are all that's known?

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harmony
Posts: 503
Joined: Sun Nov 24, 2013 1:35 am

Value if div & share price are all that's known?

Post by harmony » Sun Sep 09, 2018 11:29 pm

Executors of an estate of which I am an heir have reason to believe an old stock certificate may have been lost. A dividend of $6000 was paid in 2010 (as seen on a line from the decedent’s 2010 tax return). The 2010 annual dividend for the stock was 1.185%. The largest portion of the annual dividend (1%) was paid on a date when the closing price/share was $24.34. Ignore the smaller .185% and just consider the 1% here for simplicity's sake. The 9-7-18 share price at closing was $20.64. Is it possible from this set of facts and figures to estimate the current approximate value of this investment? There have been no stock splits since 2010. Thank you.

bogglizer
Posts: 193
Joined: Tue Aug 16, 2016 8:56 pm

Re: Value if div & share price are all that's known?

Post by bogglizer » Sun Sep 09, 2018 11:55 pm

harmony wrote:
Sun Sep 09, 2018 11:29 pm
Executors of an estate of which I am an heir have reason to believe an old stock certificate may have been lost. A dividend of $6000 was paid in 2010 (as seen on a line from the decedent’s 2010 tax return). The 2010 annual dividend for the stock was 1.185%. The largest portion of the annual dividend (1%) was paid on a date when the closing price/share was $24.34. Ignore the smaller .185% and just consider the 1% here for simplicity's sake. The 9-7-18 share price at closing was $20.64. Is it possible from this set of facts and figures to estimate the current approximate value of this investment? There have been no stock splits since 2010. Thank you.
Assume that the dividend was paid after your closing price, not before. Value back then was $6,000/1% = $600,000. So, number of shares is $600,000 / $24.34 = 24,651 shares. At $20.64/share, that has a value now of $508,797. The certificate was probably for 25,000 shares.

harmony
Posts: 503
Joined: Sun Nov 24, 2013 1:35 am

Re: Value if div & share price are all that's known?

Post by harmony » Mon Sep 10, 2018 12:02 am

Thanks Bogglizer. That's how I did the math too. I wanted to double check before I encouraged the executor to keep looking for this. Paperwork is on the way as I understand it. We've been emailing equations back and forth wondering if we have it right or not.

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