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Dividend yield |
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Dividend yieldThe annual dividend income per share received from a company divided by its current share price. Put simply - how much income are you getting out of the company for the capital you've got locked up in it?Dividend yields are calculated on the net dividend.Example: a company declares a net dividend of 2.1p per share. Its share price is 150p. To get the dividend yield, divide the net dividend by the current share price:2.10 /150 = 1.4%The dividend yield is 1.4%. Note that the higher the share price, the lower the dividend yield. Using the above example, if the shares rose to 200p, the yield would fall to 1.05%2.10/200 = 1.05%The problem for investors is that if a company has a low dividend yield compared to other companies in its sector, it can mean two things. Either it means the company's share price is high because the market reckons it's got great growth prospects and doesn't care too much about income, or it means that the company's a busted flush and can't afford to pay decent dividends.Similar MatchesDiscounted dividend model (DDM)Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. Ex dividendEx dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend. It is the interval between the record date and the payment date during which the stock trades without its dividend-the buyer of a stock selling ex-dividend does not receive the recently declared dividend. Antithesis of cum dividend (with dividend). Selling dividendsSelling dividendsInducing a prospective customer to buy shares in order to profit from a dividend scheduled in the near future. Dividend clawbackDividend clawbackAn arrangement under which sponsors of a project agree to contribute as equity any prior dividends received from the project to the extent necessary to cover any cash deficiencies. Dividend clienteleDividend clienteleA group of shareholders who prefer that the firm follow a particular dividend policy. Such a preference may be based on comparable tax situations. Further SuggestionsDividend Discount Model (DDM)dividend reinvestment plan dividend growth Dividend payout ratio dividend cover Omitted dividend Accumulated dividend Traditional view (of dividend policy) Interim dividend scrip dividend Residual dividend approach Stock dividend Dividend Disbursing Agent Dividend Order Dividend requirement Dividend rollover plan Equalizing dividend Outstanding Dividends final dividend Indicated dividend income dividend dividend discount model Dividends received deduction Income dividend Special dividend |
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