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Financial Terms related to Dividend
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glossary with more than five thousand financial
and business terms.
This...
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Dividend
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
DIVIDEND
Average dividend yield
• Combined with price appreciation, the average dividend yield (if any) can show a
potential total return from a security investment.
The formula for the average
dividend yield is:
(EPS *Average Payout) / current price
where EPS = Estimated Future High EPS / (1 + EPS Growth) 2.
5
Companies that pay a dividend will generally increase the dividend as EPS grow.
Share price growth will usually follow the dividend increases, and thus keep dividend
yield at a constant percentage.
Cash dividend
• A dividend paid in cas
Less