   
|
|
Indicated Yield
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
The indicated yield is the indicated dividend for a share of stock divided by the stock price. Since the indicated dividend is a projection of dividends for the next twelve months, the indicated yield estimates the annual return from cash dividends a stockholder can reasonably expect. Because the stock's total return comprises capital appreciation along with cash dividends, the indicated yield represents only part of the return calculation. . However, if the indicated yield is high and the dividend safe, the risk of a substantial decline in stock price is usually relatively small. Thus the indicated yield is important: Assuming the company's dividend policy is conservative and predictable, the indicated yield represents the portion of total return that is relatively certain. The indicated yield can be usefully compared with those of other stocks and the interest rate on debt instruments. The indicated yield of a stock, where applicable (some stocks don't pay dividends), is presented in stock tables.
Rate this indicated yield definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |