Average dividend payout ratios and return on equity figures were consistently higher over three years for the companies with three or more women on their board, the research finds.
That is, aggregate dividends can be determined arithmetically by nominal GDP, corporate earnings as a percent of nominal GDP, and
the average dividend payout ratio.
Aggregate Dividends = (Nominal GDP) x (Corporate Earnings as % of GDP) x (
Average Dividend Payout Ratio)
That's twice
the average dividend payout on the S&P 500.
Not exact matches
It has a 5.54 % yield — it increased its
dividend by 6.9 % last quarter — and while more purchases like this one could impede future
dividend increases, writes Plessis, you're still getting an above
average payout.
Discipline refers to the rigorous quantitative and qualitative methodologies used in the identification and selection of companies that have: better than
average relative valuations; a track record of
dividend growth and a sustainable
payout level; and balance sheet strength.
Within each segment, rank stocks based on total net
payout yield (NPY), calculated as
dividend yield minus change in shares outstanding divided by its 24 - month moving
average.
Portfolio # 1 shows an
average dividend yield of 8.12 %, this is a very impressive
payout distribution yield.
Taking this key metric into account, I ran a screen for
dividend payers in the energy and materials sector, trading on a major U.S. exchange with yields better than the 10 - year Treasury and an even more sustainable
payout ratio of less than 25 % — lower than the S&P 500
average.
Over the 50 - year period, the
dividend payout ratio
averaged 43 %, meaning that 57 % of earnings were being invested to support future growth.
Here are the equations with y = the 4 - year moving
average of the growth of the
dividend amount and x = the
payout ratio based on smoothed earnings E10.
My problem is that when i look for stocks i set very strict parameter rules like: — minimum
dividend growth rate of 7 - 10 % in last years 10, 5 years
average — historical stocks that increased
dividend at least for the last 15 years or paid historically (like BANK OF NOVA SCOTIA)-- very low debt — low
payout ratio — historically (long term) stock price has been increasing etc...
The latter portfolio growth concern translates into a very boring but predictable REIT that increases its
dividend payout on
average 2 % a year.
I determined the growth of (real)
dividends as a function of the
payout ratio (
dividends / earnings) in terms of E10, the
average of a decade of trailing (real) earnings.
It's nice to see that my regular monthly
dividend payouts are fast approaching the $ 500 mark (my projected
average dividend income hit that milestone last August), and I will probably reach it within the first quarter of 2015.
With a monthly
payout of 7 cents per share, I will receive $ 10.50 per month from CHW, which raises my projected monthly
average dividend income to $ 654.88.
Dividend investing lesson for the month: Limit your dividend stock's payout weight (the percentage of the average monthly dividend
Dividend investing lesson for the month: Limit your
dividend stock's payout weight (the percentage of the average monthly dividend
dividend stock's
payout weight (the percentage of the
average monthly
dividend dividend income).
Not only does Target have 46 consecutive years of
dividend increases under its belt, but the company has increased its
payout by an
average of 19.8 % a year for the past 10 years.
The remaining stocks are then assigned a rank based on their yield (the higher the yield the higher the rank),
payout ratio (the lower the
payout ratio the higher the rank), 3 year
dividend growth rate, and 5/10 year Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
dividend growth rate, and 5/10 year
Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
Dividend Acceleration / Deceleration (5 - year
average increase divided by 10 - year
average increase).
Within each segment, rank stocks based on total net
payout yield (NPY), calculated as
dividend yield minus change in shares outstanding divided by its 24 - month moving
average.
Using this data it is possible to infer the
dividend yield for each period that is used, along with the
average payout ratio, from the current MSCI data to calculate the earnings per share and CAPE prior to 2005.
These companies have increased their
dividend for at least 15 years and have a lower than
average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable
dividend yield and
payout ratio.
As seen below, the company's
payout ratios have been somewhat volatile over the last decade but have
averaged around 50 - 60 %, providing reasonable cushion and opportunity for
dividend growth.
The equations determine y = the 4 - year moving
average of the growth of the
dividend amount and x = the
payout ratio based on smoothed earnings E10 (where x is a percentage).
The
average payout ratio for the group is 57 %, meaning just over half of the companies earnings are used to pay
dividends, this is a reasonable level.
AGNC pays $ 2.75 annual
dividend yield: 11.80 % Its projected 10YOC is 11.80 %,
payout ratio 129 % (note, this is a REIT, the ratio will be at or higher than 100 %) 5 yr
average growth: -6.88 % paid
dividend since: 2008 # of years of consecutive
dividend increases: 0 years
GG pays $ 0.60 annual
dividend yield: 2.40 % Its projected 10YOC is 4.01 %,
payout ratio 31 % 5 yr
average growth: 30.18 % paid
dividend since: 2001 # of years of consecutive
dividend increases: 4 years
MCD pays $ 3.40 annual
dividend yield: 3.60 % Its projected 10YOC is 6.64 %,
payout ratio 59 % 5 yr
average growth: 10.17 % paid
dividend since: 1976 # of years of consecutive
dividend increases: 37 years
OHI pays $ 2.04 annual
dividend yield: 5.90 % Its projected 10YOC is 14.76 %,
payout ratio 256 % 5 yr
average growth: 10.58 % paid
dividend since: 1992 # of years of consecutive
dividend increases: 10 years
Franklin Resources has a
Dividend Growth Score of 71, indicating that dividend investors can expect continued stronger than average payout growth, at least for the tim
Dividend Growth Score of 71, indicating that
dividend investors can expect continued stronger than average payout growth, at least for the tim
dividend investors can expect continued stronger than
average payout growth, at least for the time being.
Supporting this is the company's
average dividend quality score of 58 out of a possible score of 100, which points to some weakness in being able to sustain the higher
payout ratio.
PSEC pays $ 1.33 annual
dividend yield: 12.90 % Its projected 10YOC is 19.47 %,
payout ratio 171 % (note, this is a BDC, the ratio will be at or higher than 100 %) 5 yr
average growth: -3.43 % paid
dividend since: 2004 # of years of consecutive
dividend increases: 2 years
Portfolio # 1 shows an
average dividend yield of 8.12 %, this is a very impressive
payout distribution yield.
Brown - Forman has a
Dividend Growth Score of 83 indicating that dividend investors can likely expect better than average payout growth in the years and decades
Dividend Growth Score of 83 indicating that
dividend investors can likely expect better than average payout growth in the years and decades
dividend investors can likely expect better than
average payout growth in the years and decades to come.
VNR pays $ 2.52 annual
dividend yield: 8.70 % Its projected 10YOC is 8.70 %,
payout ratio N / A 5 yr
average growth: 4.77 % paid
dividend since: 2008 # of years of consecutive
dividend increases: 0 years
This compares to a peer
average dividend yield of 2.39 percent and a
payout level of 46.70 percent.
VTR pays $ 2.90 annual
dividend yield: 4.80 % Its projected 10YOC is 12.76 %,
payout ratio 176 % 5 yr
average growth: 7.21 % paid
dividend since: 1999 # of years of consecutive
dividend increases: 4 years
The ROC and income parts of EDF's
dividends change a little from month to month, but ROC
averages around 15 % and income
averages 85 % of the total
dividend payout, so that's an Income / ROC ratio I can live with.
So you add nearly 2 % of after - tax return per annum if you only achieve an
average return by historical standards from common stock investments in companies with tiny
dividend payout ratios.
This represents a yield of 4.3 % and a
payout ratio of 64 %, which is in line with the company's historical
averages and why VZ is considered one of the more appealing, safe
dividend stocks.
However, the company's
average dividend quality score of 58 out of a possible score of 100, points to some weakness in the sustainability of its robust
payout ratio, and makes its less attractive for
dividend investors seeking current income.
With a yield that's higher than the
average dividend - paying stock in the S&P 500, and management's history of increased
payouts, ABT stock is one to consider for retirement portfolios.
The company's
payout ratios are relatively low compared to peers as well, which should provide at least
average dividend growth going forward.
They were 35.3 % (single - year), 34.1 % (five year
average of
payout ratios) and 34.2 % (
average of five years of
dividends divided by the
average of five years of earnings).
Using an alternate criterion (that the
average of five years of
payout ratios or the ratio of the
average of five years of
dividends divided by five years of earnings must be below 40 %), there were three sequences with returns less than 1 % over 5 - years: 1997, 1998 and 2000.
Dividend Growth Baselines
Dividend Growth Rates In my Addendum to
Dividend Growth Rates, I wrote: «I examined the single - year
payout ratio [D / E], the
average of five years of single - year payout ratios [Average (D / E)-RSB- and the ratio of the average of five years of dividends to the average of five years of earnings [Average (D) / Average (E
average of five years of single - year
payout ratios [
Average (D / E)-RSB- and the ratio of the average of five years of dividends to the average of five years of earnings [Average (D) / Average (E
Average (D / E)-RSB- and the ratio of the
average of five years of dividends to the average of five years of earnings [Average (D) / Average (E
average of five years of
dividends to the
average of five years of earnings [Average (D) / Average (E
average of five years of earnings [
Average (D) / Average (E
Average (D) /
Average (E
Average (E)-RSB-.
And with
dividend payouts for the broad stock market now below 2 % and the
average domestic - stock fund's expense ratio more than 1 %, it's easy to see how the math can get very ugly very fast for investors in high - cost
dividend - focused funds.
These are the years in which the five - year
average of the
payout ratio is less than 50 % and the 5 - year
dividend growth rate is less than 1.0 %.
I agree that the ROE isn't stellar,
averaging 9 % over the past three years, but I do think the low valuation, strong balance sheet, and most importantly the potential
dividend growth merit your consideration (current
dividend payout is just 32 % of 2013 EPS estimates, and ideally they'd continue their strong recent series of increases).
So you add nearly 2 % of after - tax return per annum if you only achieve an
average return by historical standards from common stock investments in companies with low
dividend payout ratios.