EDIT: RSG was called away a day earlier than I thought; the sale posted to my account on the 29th, but was executed on the 28th. Since the shares were called before the ex-dividend date, the dividend went with them.
In June, I sold 5 $25 October calls on my RSG stock; the stock is now trading at $26 and change, so imagine my surprise when the shares were called away yesterday on no news! They were called away on the ex-dividend date, so the buyer chose to call the shares on the very first day they wouldn't get the dividend. I'm baffled, but I'm happy to keep the dividend; it's a nice 2.87% yield at the current price of $26.50. I bought the shares at $19.11, so my yield is higher.
The dividend is $0.76 per share. The yield is the dividend divided by the current share price; this is the money you get in dividends for every dollar you spend.
$0.76/$26.50 = 2.87%
So for every hundred dollars I spend on RSG, I'll get $2.87 back this year.
However, I bought RSG at a lower price. My shares increased in value, but I'm paid the same dividend as all the other common shareholders.
My dividend yield is:
$0.76/$19.11 = 3.98%
For every hundred dollars of my original investment, I'm getting $3.98 per year.
This is why I like dividend bearing stocks, and why I keep a close eye on them.
Helpful links on dividends:
the SEC: http://www.sec.gov/answers/dividen.htm
Investopedia: http://www.investopedia.com/articles/02/110802.asp
