In making the announcement Listing Manager James McKirdy explained, "By calculating the yield in accordance with the Issuer's last twelve month regular dividend payment schedule, rather than the last annual account period, the Bermuda Stock Exchange will be able to offer shareholders and potential investors much more current and accurate information. Assisting them in part, to make more informed decisions about the market.
Furthermore, it brings the BSX into line with international standards for calculating dividend yields"
€˜Yield' is the historical 12-month dividend or interest a stock or bond will earn, expressed as a percentage of the amount paid for the security or of the security's par value. Yield is calculated by dividing the dividend amount by the cost of the share x 100. For instance if the dividend paid was $1.10 and the share's market value was $45, the yield on that security would be 2.44%.
As a further example, in the case of the Bank of Butterfield, at a price of $17.25 the change in the method of calculation means that the Bank's yield is now shown as 4.36 rather than 3.94, as based on the latest audited accounts.
The BSX publishes yield and other pertinent investor information in their Daily Trade Report, which appears in every edition The Royal Gazette.