Not surprisingly,
the historical average dividend yield on the S&P 500 has been just about 4 %.
Not exact matches
Of course, in recent years, stock prices have grown much faster than earnings and
dividends, driving the P / E far above its
historical average and the
dividend yield (D / P) far below its
historical average.
If the
dividend yield rises to the
historical average of 4 % even 30 years from now, investors will have earned a total return of just 5 % annually over that span.
According to Brian, not only is the stock's forward P / E ratio of 15.0 much lower than its
historical norm of 19.1, but its current
dividend yield of 2 % is nearly double the company's 22 - year
average yield of 1.2 %.
AAII Stock Ideas Screening for Stocks With High Relative
Dividend Yields This AAII.com screen identifies stocks with yields that are above their historical averages and that have histories of rising dividend p
Dividend Yields This AAII.com screen identifies stocks with yields that are above their historical averages and that have histories of rising dividend pay
Yields This AAII.com screen identifies stocks with
yields that are above their historical averages and that have histories of rising dividend pay
yields that are above their
historical averages and that have histories of rising
dividend p
dividend payments.
This AAII.com screen identifies stocks with
yields that are above their
historical averages and that have histories of rising
dividend payments.
Therefore, tracking the
dividend yield and comparing it to the
historical average of that stock can highlight times when it may be undervalued.
With 7 % upside on top of a
yield that's higher than its recent
historical average, this
dividend growth stock deserves a good look here.
Current S&P 500
dividend yield is about 1.9 %, which is less than the typical 3 %
historical average over the last century.
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.
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.
The following table shows the low end of the 5 and 10 year
historical averages for
dividend yield, P / E ratio, P / S ratio, and EBITDA per share as well as the FY 2015 estimate for each metric with the corresponding price targets.
September 2010 by Charles Rotblut This AAII.com screen identifies stocks with
yields that are above their
historical averages and that have histories of rising
dividend payments.
Absolute Valuation Models We begin with a discussion of the two absolute valuation models named in Table 1: Model 1, the
average of
dividend yield and earnings
yield; and Model 2,
dividend yield plus
historical average real growth.
When a stock's
dividend yield is at or above its
historical average high, it's time to buy.
Weiss» rule of thumb notes that stocks tend to be undervalued or overvalued when they are within the 10 % range of their
historical levels of high or low
dividend yield average.
With the potential for 35 % upside on top of a
yield that's well above its recent
historical average, there could be a huge opportunity for long - term
dividend growth investors here.
It would put the
dividend yield at just 2.8 %, far below the
historical average of 4 % which has been attained at every bear market low.
And as noted last month, even if
dividend payouts were boosted to the
historical average 52 % of earnings, the current
dividend yield would be only 1.8 %.
Below is the
historical data for the S&P
average dividend yield.