I am from India and new to share market. When I was doing some research to find which share to buy, I found one share(of Punjab National Bank) listed with 165% dividend percentage. The same percentage is given in multiple websites.
As far as I understood Dividend percentage is (dividend amount/price per share)*100. So div percent of 165% doesn't make any sense.
Please help me if I am missing out something. Here are the links
Do not confuse the DIV (%) value and the dividend yield.
As you can see from this page, the DIV (%) is, as you say, 165%. However, the dividend yield is 3.73% at the time of writing.
As the Investopedia page referenced above says:
The payout ratio is calculated as follows: Annual Dividends per Share / Earnings per Share.
which means that the dividends being paid out are more than the earnings of the company:
In extreme cases, dividend payout ratios exceed 100%, meaning more dividends were paid out than there were profits that year. Significantly high ratios are unsustainable.
