Forward Dividend Yield
- An estimation of a year's dividend expressed as a percentage of current stock price. The year's projected dividend is measured by taking a stock's most recent actual dividend payment and annualizing it. Forward dividend yield is calculated by dividing a year's worth of future dividend payments by a stock's current share price.
For example, if a company pays a Q1 dividend of 25 cents and you assume the company's dividend will be consistent, then the firm will be expected to pay $1.00 in dividends over the course of the year. If the stock price is $10, the forward dividend yield is 10%.
The opposite of a forward dividend yield is a trailing dividend yield, which shows a company's actual dividend payments relative to its share price over the previous 12 months. When future dividend payments are not predictable, trailing dividend yield can be a better measure of value. When future dividend payments are predictable or have been announced, forward dividend yield is a more accurate tool.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Dividend yield — The dividend yield or the dividend price ratio on a company stock is the company s total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. It is often expressed as a… … Wikipedia
Dividend stripping — is the purchase of shares just before a dividend is paid, and the sale of those shares after that payment, i.e. when they go ex dividend. This may be done either by an ordinary investor as an investment strategy, or by a company s owners or… … Wikipedia
Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Dividend — This article is about financial dividends. For dividends in arithmetic, see Division (mathematics). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis … Wikipedia
Forward price — The forward price or forward rate is the agreed upon price of an asset in a forward contract. Using the rational pricing assumption, we can express the forward price in terms of the spot price and any dividends etc., so that there is no… … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
P/E ratio — The P/E ratio (price to earnings ratio) of a stock (also called its earnings multiple, or simply multiple, P/E, or PE ) is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. [cite web|url … Wikipedia
Outline of finance — The following outline is provided as an overview of and topical guide to finance: Finance – addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks… … Wikipedia
market — Usually refers to the equity market. The market went down today means that the value of the stock market dropped that day. Bloomberg Financial Dictionary * * * ▪ I. market mar‧ket 1 [ˈmɑːkt ǁ ˈmɑːr ] noun 1. [countable] COMMERCE the activity of… … Financial and business terms
Black–Scholes — The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/) is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European … Wikipedia