Should dividends be a %



  • As dividends are a hot subject just now, I was wondering what peoples thoughts are on dividends being quoted in % rather pence? This would negate the need for dividend increases in future as the top end of the market would not "outgrow" dividends as seems to be the case now. Also it would fall in line with other investments, e.g. interest on cash, dividends on shares, yield on bonds etc. I'm sure FI would have looked into this and decided against it, but I'm curious what other traders think? Thx



  • No.

    Wouldn't work for so many reasons I can't be arsed explaining, but no chance it could work.



  • @Old-Man
    A percentage of what? The winning player's price? The market cap?



  • @RU99 please try to explain why not, just one reason would be good, thx.

    And @janner73 a % of the players price e.g. 300 Pogba, current price £7. If dividend was 0.1% then youd receive 0.1% x £7 x 300 = £2.10.



  • @Old-Man personally can't see it working....how would you pay out for someone who is holding 2 shares of someone at 40p?



  • @Old-Man said in Should dividends be a %:

    @RU99 please try to explain why not, just one reason would be good, thx.

    And @janner73 a % of the players price e.g. 300 Pogba, current price £7. If dividend was 0.1% then youd receive 0.1% x £7 x 300 = £2.10.

    I feared that was what you meant. There are a number of potential problems I see with that:

    1. How do you determine the price? Their price on that day? If so what time on that day as we can see huge price fluctuations on a goal.
    2. Why should I get less as a monetary amount if I've researched that 40p gem and he finally wins a treble MB day than someone holding Neymar gets when he wins?

    I think percentage CAN work if they are based on the size of the market, so as an example.

    FOOTIE is between 100,000 and 150,000
    PB is 6p,4p,2p (treble day, double day, single day)

    FOOTIE is between 150,001 and 200,000
    PB is 9p, 6p, 3p (treble day, double day, single day)

    This would allow for dividends to rise and fall with the market without the need for FI to do a review, and would give everyone clarity as to when increases kick in.



  • I actually think the 'pound' and 'pence' mark should be removed to make trading look more attractive.... That Mike fella who comes on Talksport and preaches to Jim White about Rabbi Matondo at £1.49... or Wayne Rooney at 77p... No wonder they don't take it seriously!!!!

    If the price was 1.49 or 0.72 and dividends were paid at 0.5etc it might look slightly more intriguing?

    Don't think it will ever happen though?



  • @Old-Man dividends on shares? Most companies pay a dividend in pence rather than a %?



  • @dannypea said in Should dividends be a %:

    mark should be removed to make trading look more attractive.... That Mike fella who comes on Talksport and preaches to Jim White about Rabbi Matondo at £1.49... or Wayne Rooney at 77p... No wonder they don't take it seriously!!!!
    If the price was 1.49 or 0.72 and dividends were paid at 0.5etc it might look slightly more intriguing?
    Don't think it will ever happen though?

    I've thought for a while it should be a pence number without the decimal point - so 149 or 72 in your examples.



  • I love the idea but it surely would be a disaster for FI

    Let's say Neymar starts winning divs again (he's had nothing for a couple of weeks).

    FI will pay out a lot of money on him because of the high price, and then others will see the returns and jump in, thus pushing the prices higher and causing FI to shell out MORE money in divs etc etc.

    Great for us traders yea, but not viable unfortunately



  • @kristiang85 yeah good shout!! i would be happy with that!!



  • @Old-Man have a question for you seeing as you have traded, presumably the footsie? So the footsie has the footsie 100 as a measure of the market like we have the footie, but is it known how the footsie is calculated? What I'm really getting at, is should FI show more transparency as to how to footie is calculated so we can better gauge the market?



  • @Ddr yes the Footsie is a specifically defined index and must be calculated accordingly. I'm sure theres websites that show you how if you're interested. So the answer is a definite yes, FI should define how the Footie is calculated



  • @Ddr

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    The FOOTIE will be calculated in a roughly similar way but we don't know the divisor.



  • @Old-Man i had thought this too but the premium players would go through the roof. I did wonder the could do something similar buy doing dividends brackets. So a top 100 player would earn a set dividend range then 100 to 200 and so on tor example the dividends for a win in PB or MB

    Top 100: MB/PB. 5p
    100-200: 4p
    200-300: 3p
    300-400: 2p
    400 >. 1p

    If neymar wins top forward he would earn 5p if Vardy wins top forward that day he only gets 3p

    It would help those premium players to retain value as the size of the players available on the index grows



  • @Shippers yes I think you're right. Its a while since I received a share dividend, guess I just got carried away a bit!! Thanks for putting me right. I think the original question is still valid though?



  • @Black-wolf said in Should dividends be a %:

    @Old-Man i had thought this too but the premium players would go through the roof. I did wonder the could do something similar buy doing dividends brackets. So a top 100 player would earn a set dividend range then 100 to 200 and so on tor example the dividends for a win in PB or MB

    Top 100: MB/PB. 5p
    100-200: 4p
    200-300: 3p
    300-400: 2p
    400 >. 1p

    If neymar wins top forward he would earn 5p if Vardy wins top forward that day he only gets 3p

    It would help those premium players to retain value as the size of the players available on the index grows

    @Black-wolf maybe I'm being cynical but would you have faith in FI keeping up with this as players fluctuate between these parameters?

    I do like the idea though



  • @Black-wolf said in Should dividends be a %:

    @Old-Man i had thought this too but the premium players would go through the roof. I did wonder the could do something similar buy doing dividends brackets. So a top 100 player would earn a set dividend range then 100 to 200 and so on tor example the dividends for a win in PB or MB

    Top 100: MB/PB. 5p
    100-200: 4p
    200-300: 3p
    300-400: 2p
    400 >. 1p

    If neymar wins top forward he would earn 5p if Vardy wins top forward that day he only gets 3p

    It would help those premium players to retain value as the size of the players available on the index grows

    Disagree with this. Top players should be top players because they earn the more divs on a level playing field. Premium players like Neymar should retain his value because he regularly earns more than Vardy on a level playing field. Why should a 40p player have to win PB 5 times to earn the same as Neymar winning it once?

    Best suggestion I have seen on this thread is basing the dividends on the strength of the footie, so if the footie increases, divs automatically go up. If the footie declines, div payouts drop.



  • @MickTurbo surely it wouldnt be much different from a player moving from the squad list to the top 200



  • @BradD because if that 40p player won pb 5 times he wouldnt be in the 1p bracket anymore he’d likely move up into the 3p or 4p bracket just like a top player wouldnt stay in the top bracket if he wasnt earning dividends as the ones that were would push him down


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