Next, I took the return data for the current Dividend Champion lists and
averaged the dividend adjusted returned over the past 63, 126, and 252 trading days and assigned a rank to each stock.
Not exact matches
Core return on equity is the ratio of annualized core income less preferred
dividends to
adjusted average shareholders» equity for the periods presented.
Average annual core return on equity over a period is the ratio of: a) the sum of core income less preferred dividends for the periods presented to b) the sum of: 1) the sum of the adjusted average shareholders» equity for all full years in the period presented, and 2) for partial years in the period presented, the number of quarters in that partial year divided by four, multiplied by the adjusted average shareholders» equity of the partia
Average annual core return on equity over a period is the ratio of: a) the sum of core income less preferred
dividends for the periods presented to b) the sum of: 1) the sum of the
adjusted average shareholders» equity for all full years in the period presented, and 2) for partial years in the period presented, the number of quarters in that partial year divided by four, multiplied by the adjusted average shareholders» equity of the partia
average shareholders» equity for all full years in the period presented, and 2) for partial years in the period presented, the number of quarters in that partial year divided by four, multiplied by the
adjusted average shareholders» equity of the partia
average shareholders» equity of the partial year.
«Parent Trading Price» shall mean the
average closing sales price of one (1) share of Parent Common Stock as reported on the New York Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as
adjusted as appropriate to reflect any stock splits, stock
dividends, combinations, reorganizations, reclassifications or similar events).
Using weekly T - note yields (
average of daily values measured on Friday) and contemporaneous S&P 500 Index levels since January 1962, and weekly
dividend -
adjusted levels of SPY and IEF since July 2002, all through January 2018, we find that: Keep Reading
This is true whether you measure S&P 500 valuation by the cyclically -
adjusted price - to - earnings ratio, the market - capitalization - to - GDP ratio, the price - to - book - value ratio, the
average dividend yield, or most other valuation metrics.
First — The 5.2 % estimate is derived from the
average of several methods that he uses, only one of which is the
dividend yield method (other include cyclically
adjust earnings and his own method of forward earnings).
In contrast, I've often quoted the Shiller P / E (which essentially uses a 10 - year
average of inflation -
adjusted earnings) as a simple but historically informative alternative, but I should emphasize that we strongly prefer our standard methodologies based on earnings, forward earnings,
dividends and other fundamentals, all which have a fairly tight relationship with subsequent 7 - 10 year total returns (see Lessons from a Lost Decade, The Likely Range of Market Returns in the Coming Decade, Valuing the S&P 500 Using Forward Operating Earnings, and No Margin of Safety, No Room for Error).
Please note the data source is Yahoo Finance and I use the
dividend adjusted closing price to calculate the moving
average.
Recognizing that
dividends are a poor measure of a company's cash flows, Shiller and Campbell used a ratio of real (net of inflation) market price relative to 10 - year
average of real earnings — which they called the cyclically
adjusted PE, or CAPE, ratio — to reach the same conclusion.
The divisor is
adjusted to account for stock
dividends and stock splits, substitutions and mergers, and cash equivalent distributions equal to 10 percent or more of the closing price for an issue in the
average.
While the market surged 734 % over the entire period, and the
average equity fund moved by 589 %, the asset allocators increased only 384 %, about half the gain of the
averages (all figures are
dividend adjusted).
Using
average January data for the S&P 500 from 1871 to 2010 my dataset suggests a total return real (ie including
dividends, inflation
adjusted) CAGR of 6.5 % so that's a match.
Dividends, inflation -
adjusted data, and
averages are included.
It simply
averages the percentiles of both the cyclically
adjusted P / E ratio and the Price - to -
Dividend Ratio.
I call my growth metric G10, because otherwise it's a massive mouthful to say that it's the
average of the 10 year growth of revenues,
adjusted earnings and
dividends, where the
adjusted earnings growth is calculated as the growth between the latest 3 year
average and the 3 year
average from 7 years ago.