Not exact matches
The stocks that hedge funds have largely ignored tend to be much larger than the hotels, have less debt, grow earnings more slowly but consistently, and pay bigger
dividends (an
average yield of nearly 3 % for the S&P 500 constituents,
compared with 2 % for the index overall).
I plan on talking about
dividend stocks, where they are at today and
comparing them to 5 year
dividend yield
averages.
If you've ever had occasion to look into the academic research
comparing different types of returns from stocks that have different characteristics, as a class,
dividend stocks tend to do better than the
average stock over long periods of time.
There are a multitude of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime by focusing on
dividend stocks, specifically one of two strategies -
dividend growth, which focuses on acquiring a diversified portfolio of companies that have raised their
dividends at rates considerably above
average and high
dividend yield, which focuses on stocks that offer significantly above -
average dividend yields as measured by the
dividend rate
compared to the stock market price.
A value under 1.0 suggests the
dividend growth rate has declined
compared to the 10 year
average.
That
compares favorably to all of the
Dividend Champions, Contenders, and Challengers, whose
average D / E is 1.0.
Based on the
Dividend Discount Model (DDM) with a 10 % discount rate (the target rate of return), if the company grows the dividend by an average of 7 % per year for the long term, then the fair price is over $ 90, compared to the current stock price of only abo
Dividend Discount Model (DDM) with a 10 % discount rate (the target rate of return), if the company grows the
dividend by an average of 7 % per year for the long term, then the fair price is over $ 90, compared to the current stock price of only abo
dividend by an
average of 7 % per year for the long term, then the fair price is over $ 90,
compared to the current stock price of only about $ 83.
This
dividend yield
compares favorably with the market
average of 2 %.
Given the wild popularity of
dividends these days, I'm surprised the daily trading volume
averages only about 13,000,
compared with more than 100,000 for Claymore's S&P / TSX Canadian
Dividend ETF.
In down markets during 1970 - 1996, the highest
dividend stocks fell 3.8 % (per quarter,
averaged) in down quarters as
compared to 7.5 % for the market overall.
Quite a lackluster yield
compared to the 9 % yield my
dividend portfolio
averages.
For example, over five years is it just the
average of the
dividend growth rates for each year individually, or do you take the
dividend at year 1 and
compare it to the
dividend in year 5?
I have read that re-invested
dividends lower your taxes by increasing your
average cost of the security so that when you sell your security, the difference between the sales price minus the book value (which includes re-invested
dividends), becomes less
compared to if you didn't re-invest your
dividends.
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.
The year finished with the S&P 500 up 9.5 % (not including
dividends),
compared to the index's
average annual rate of 8.1 % since 1977.
The current
dividend yield is 4.11 %, which is great
compared to the S&P 500
average of 1.7 %.
Now
compare these rates to a guaranteed lifetime rate of return
averaging 4 % in a whole life policy from a mutual life insurance company, AND don't forget to add an additional 3 - 4 % on top as an
average annual whole life insurance
dividend.
Therefore, tracking the
dividend yield and
comparing it to the historical
average of that stock can highlight times when it may be undervalued.
Siegel
compares the change in the long - term
average dividend yield with the change in long - term
average earnings growth.
This
compares to a peer
average dividend yield of 2.39 percent and a payout level of 46.70 percent.
This Zacks Rank # 2 (Buy) company has a
dividend yield of 5.35 %,
compared with the industry
average of 4.38 %.
A higher current yield
compared to the stock's historical
average suggests better valuation, because
dividend yield is higher when price is lower, all else equal.
The company's payout ratios are relatively low
compared to peers as well, which should provide at least
average dividend growth going forward.
The
dividend yields within this sector are above
average when
compared to the wider market, largely because of the high - yielding telecom plays.
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.
The top 30 % of
dividend payers had an
average return of 11.3 %,
compared to an
average return of 8.6 % for companies that did not pay a
dividend.
This
compares to a five - year
average dividend yield of 1.6 %.
On a
dividend yield standpoint, the stock appears cheap but when we
compare its p / e, price / books, price / cashflow MCD is trading quite in line with its five years
averages and no bargain seems to be made here.