First, management has the patience and connections to source highly profitable acquisitions at above -
average cash yield rates.
Not exact matches
It's somewhat stunning that FB and GOOG trade around a 5 % free
cash flow
yield, which is roughly in line with the broader market
averages.
The 1 % free
cash flow (FCF)
yield of JETS's holdings is slightly below the 2 % offered by XLI and the
average Industrials stock due to the airline industry's above
average capital expenditures.
The methodology provides a well - screened group of stocks that also delivers
yields greater than the market (S&P 500
yields ~ 2 % while the stocks in our portfolio have an
average yield of 6.5 %), safety in the sustainability of the
yield because of strong free
cash flow, and the potential for capital gains as each stock is currently undervalued.
But if you are going to try to strategically manage your equity exposure, then watching how investors treat
cash at any point in time might be a useful tactic (alongside monitoring dividend
yields and the
average market P / E).
An alternative, and perhaps more likely, interpretation is that the market expects that the target
cash rate will remain below its
average over recent years for some time, and this expectation is reflected in bond
yields.
If he insists on an
average dividend
yield of 3 %, he would be collecting $ 94,672.08 in
cash dividends each year.
In early August,
yields on 10 - year bonds were around 75 basis points above the
cash rate, slightly less than the
average differential since the mid 1990s (Graph 66).
The spread between 10 - year bond
yields and the
cash rate is currently around 45 basis points, compared with more than 100 basis points on
average over the past decade (see the chapter on «Assessment of Financial Conditions»).
While the combination of rapid credit growth and below -
average interest rates suggests that financial conditions remain expansionary, the slope of the
yield curve, as measured by the spread between the
yield on 10 - year bonds and the
cash rate, suggests a somewhat different picture.
Over the three years ending in 2014, National Realty purchased 232, 275 and 221 properties respectively, investing a total of almost $ 2 billion with an
average initial
cash yield of 7.5 % — 8.3 %.
In short, the company is a
cash - gushing powerhouse with thick, consistent profit margins and a huge competitive moat around its business... it pays an above
average yield (and a dividend that's steadily growing)... and it continually buys back its own stock.
Most of our investments have characteristics that have been associated empirically with above -
average investment rates of return over long measurement periods: a low stock price in relation to book value, a low price - to - earnings ratio, a low price - to -
cash - flow ratio, an above -
average dividend
yield, a low price - to - sales ratio compared to other companies in the same industry, a significant pattern of purchases by insiders, a significant decline in share price.
All equities qualified in our portfolio must consistently generate above -
average free
cash flow and often provide good dividend
yield.
Earnings
Yield reflects a company's past four - year
average earnings before interest and tax, divided by its current enterprise value (enterprise value = market value + debt —
cash).
It seems these companies are able to return
cash to shareholders (via dividend raises) on
average in the 8 - 12 % range without share buybacks and in 11 - 15 % range with (total shareholder
yield) outside of any additional increase in the actual price per share.
Using daily and monthly (approximated) total returns of the S&P 500 Index and the Dow Jones Industrial
Average (DJIA), along with the U.S. Treasury bill (T - bill)
yield as the return on
cash, during January 1950 through December 2012, he finds that: Keep Reading
After setting a net worth target, I can then define a annual dividend target since I plan to hit around a 3 - 3.5 %
average yield after some
cash is put aside for emergency.
DHT's free
cash flow
yield2 at 23 % is more than quadruple the mean of its comparable companies, who
average a 5.3 % dividend
yield and who all currently pay dividends, including those who previously eliminated their dividend during the crisis.
Income,
Yield and Duration: Investment grade municipal bonds on
average have a higher coupon
cash flow to bondholders than corporate bonds and that
cash flow is exempt from federal taxation.
In this lesson, I am going to use
yield on cost to show you how you can achieve a wonderful goal: To receive, each year, in dividends alone, an amount of
cash that equals the market's long - term
average annual total return.
For example, say I built a $ 200k stock portfolio that had an
average yield of 5 % (easy at current prices, even with blue chips), and then purchased a $ 200k rental property with
cash that
yielded 7.5 % after all costs (easy to do in the US right now, but also possible in certain Canadian cities like Hamilton or Kitchener).
It has been proposed that a negative interest rate can in principle be levied on existing paper currency via a serial number lottery, such as randomly choosing a number 0 through 9 and declaring that notes whose serial number end in that digit are worthless,
yielding an
average 10 % loss of paper
cash holdings to hoarders; a drawn two - digit number could match the last two digits on the note for a 1 % loss.
He's interested in the energy - transportation business and is impressed by Inter Pipeline's above -
average yield: he receives $ 2,700 in
cash distributions annually, which he invests elsewhere.
One concern I'd highlight is
Cash Management: With an
average $ 71.3 mio
Cash, $ 0.549 mio of qtrly Financial Income implies an annual 3.08 %
yield.
As displayed in Exhibit 2, the portfolio's 3.57 %
average dividend
yield was supported by a 9.5 %
average free
cash flow
yield, compared with the benchmark's 1.99 %
average dividend
yield funded by 4.87 %
average free
cash flow
yield over the sampled history.
When you see the Total Return in the examples in the article, I am referring to an aggregation of the
cash flow
yield plus the
average annual capital appreciation of an investment asset.
For example, the earnings
yield of the S&P 500 is calculated as the total
average four - year earnings before interest and taxes across all 500 companies divided by those companies» collective enterprise values (all 500 companies» market values +
cash — debt).
This has been accompanied by a rock steady
cash cost of $ 3.67 per carat, on
average, while the
yield has stabilized in the 50 - 60 carats per tonne range for the past few years.
In fact, it ranked as our favorite
cash back credit card since it
yielded the most
cash back in an analysis of rewards earned on the
average consumer's budget.