I think bonus shares also affect future dividend yield. This was something mentioned by Arvind Datta on twitter but I might be wrong here.
So say company had 100 public shares with share price at 100 and issue dividend of Rs 5. Then dividend yield is 5%. Now lets say die to bonus , the shares become 200. Now assuming company still has same dividend pool, it would need to divided amongst 200 shares making the yoeld 2.5%.
Let me know if this sounds correct.
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