Month: May 2020

Understanding Yield

Compulsory learning for any Financial Awakening (includes SME case study).

Regardless of whether you are investing or gaming, you will eventually come to a fork in the road. It will be a financial choice, or series of choices you must make. Do you allocate your limited resources to venture A or B, or C? This decision might be long lasting, so best that you do not get it wrong.

More often than not a sound investment decision can be made by simply comparing the current yields of the available investment options. On the Goldsmith Money YouTube channel yesterday (embed below), we examined the current yields of Soccer Manager Elite teams Dinamo Zegreb and Arsenal, based on their most recent game dividends. It is apparent that a decision one way or another will have major long term implications on an investor’s financial success. So regardless of whether you this is an SME beta test or the real world, we generally want to be maximising our returns and this is how it is done.

Photo by Pixabay on

Calculating Yield…

is easy!

The formula is: Dividend per share / Current share price.

Example 1:

A share trading at $100 pays a $5 dividend – the dividend yield is $5 / $100 = 5%

In this example the share is providing the investor with a 5% yield. If only one dividend is paid per year – this share would be said to provide a yield of 5% per annum. Should it pay 2 x $5 dividends per year, it might be said to provide a 5% semi-annual dividend. Alternatively the dividend are added together and the share is said to provide the owner with a 10% annual dividend yield.

Yield doesn’t have to be limited to just dividends. It might be calculated on interest income or business earnings.

Example 2:

You deposit $100 with the bank for 1 year and at the end of the term the bank pays you $2, plus returns to you the principle. Earnings / Principle = 2 / 100 = 2%. This was interest income (yield) derived from the single bank deposit is 2% per annum.

Example 3:

Your business into which you invested $100,000 produced a net profit for the year of $10,000. Earnings / Capital Contributions = $10,000 / $100,000 = 10%. The earnings yield of the business is 10% per annum. This financial measure is sometimes referred to as the Rate of Return (RoR).

When it comes to making a financial choice between multiple investments; it is prudent to compare the yields of those investments first.

Soccer Manager Elite Beta Test – Case Study

In last night’s Soccer Manager Elite (Beta Test) we compared the yields of Dinamo Zagreb and Arsenal shares. Let’s examine the numbers.

Dacho had used 30,000 coins to buy 300 shares in Dinamo Zagreb at a price of 100 coins each. After Wednesday’s game Dacho received a dividend of 93 coins. Calculating the yield:

Dividend per share = Total dividend / # of shares = 93 / 300 = 0.31.

Dividend yield = Dividend per share / share price = 0.31 / 100 = 0.0031 = 0.31%

So investing in Dinamo Zagreb is providing shareholders with a current yield of 0.31% per game. Over a season of 40 games this would equate to a 12.4% return on Dacho’s initial investment (all other things being equal).

Tyki on the other hand decided to invest 23,000 coins in Arsenal. He bought 230 shares for 100 coins each and subsequently received a post-game dividend of 718 coins. The current yield on the Arsenal shares is:

Dividend per share = Total dividend / # of shares = 718 / 230 = 3.12 coins.

Dividend yield = Dividend per share / share price = 3.12 / 100 = 3.12%

The dividend yield per game on the Arsenal shares is 3.12%. Over a 40 match season the total dividends received would equate to a whopping 124.8% return on Tyki’s initial investment (all other things being equal).

In this scenario the shares in Arsenal are yielding circa 10x those of Dinamo Zagreb. Whilst there might be other strategic reasons for any investment decision, the matter of YIELD should never be overlooked. If you can capture a high, reliable, and regular yield early; this income can be used to fund many more investment decisions – generating even more income for this savvy investor.

Congratulations to the following SME managers who successfully located the treasure –

Emblem of House Reubo, Taurion.
  • Dacho 1888
  • Master T
  • Pratik Jathan

Winners have now been sent their 50 CHI prizes and the competition is now closed. Thank you to all the participants.

Please be sure to subscribe to the Goldsmith Money YouTube channel so to avoid missing the next XAYA / SME competition.

XAYA SME beta testing and more

Blockchain Gaming

Over the past month Goldsmith Money has found itself thoroughly involved in XAYA game beta testing. This is the beta testing for one of their two major blockchain gaming projects, being Soccer Manager Elite (SME).

Over the course of testing we produced a number of SME review videos and uploaded these to YouTube. The aim of these videos was to both provide a visual report on bugs that might be found in the game software; and, to aid in promotion (of both SME and our own branding). Importantly, it has been a lot of FUN.

We now move into phase two of the testing and it appears that all testers are stepping it up a notch. Game-play is now thrillingly serious and at times can involve a mild level of sledging. There are now others also promoting SME with YouTube game clips and written articles.

This week Goldsmith Money stepped it up a notch too, by introducing a treasure hunt prize being 200 CHI, with a 50 CHI prize being available to 4 of the current SME Managers.

CHI is the native money for the XAYA blockchain and a necessary fuel for participation on the chain. It is of course the velocity of money which will builds thriving economies, so sharing a little CHI around could produce some new blockchain growth.

Similarly, the team at XAYA HQ have just announced a 50 CHI prize for all team managers who win their upcoming games. So you can be sure that managers will be setting and adjusting lineups, formations, tactics and substitutions, right up to the 12 hour cutoff.

We are now at 80+ managers testing the software and I hope they are all enjoying it as much as I am. And hopefully for everyone this type of enthusiasm continues into the full release.

Finally – the following is a link to the YouTube clip from last night which announced the treasure hunt.

I am very pleased to announce that we had 2 treasurer hunters who found the ball from the video at Good Money and the Dollar. Congratulations to SME managers UiGoku and Dacho 1888 – CHI has been sent your way.

There were some participants who thought that the SME Balls may have been the ball in the video – unfortunately this was not the case. So no prizes here. As such the remaining 100 CHI will be carried over to a new Goldsmith Money SME Treasure Hunt in a week or so.

Stay well everyone and keep gaming – because this is where the money is. Better yet… keep Blockchain Gaming – because this is where the future is.