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Forward Dividend Yield

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What is a 'Forward Dividend Yield'

A forward dividend yield is an estimation of a year's dividend expressed as a
percentage of current stock price. The year's projected dividend is measured
by taking a stock's most recent actual dividend payment and annualizing it.
Forward dividend yield is calculated by dividing a year's worth of future
dividend payments by a stock's current share price.

BREAKING DOWN 'Forward Dividend Yield'
For example, if a company pays a Q1 dividend of 25 cents and you assume
the company's dividend will be consistent, then the firm will be expected to USE TOI NETWORK TO GET TRAFFIC ON YOUR SITE

pay $1.00 in dividends over the course of the year. If the stock price is $10, SPONSORED BY COLOMBIA

the forward dividend yield is 10%.

01:46 01:46

The opposite of a forward dividend yield is a trailing dividend yield, which

shows a company's actual dividend payments relative to its share price over the previous 12
months.. When future dividend payments are not predictable, trailing dividend yield can be a better
months
measure of value. When future dividend payments are predictable or have been announced, forward
dividend yield is a more accurate tool.

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Indicated Yield
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2/2/2017 ForwardDividendYieldDefinition|Investopedia

Indicated Yield Topics Reference Advisors Markets Simulator

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The dividend yield that a share of stock would return based on its current indicated dividend.
Indicated yield is calculated by dividing the most recent dividend multiplied by the number of
dividend payments each year (the indicated dividend) by the current share price, and is usually
quoted as a percentage:

Stock ABC's most recent quarterly dividend, for example, might be $4. If the stock is currently
trading at $100, the indicated yield would be:

Indicated Yield of Stock ABC = $4 X 4 / $100 = 16%

BREAKING DOWN 'Indicated Yield'

A dividend is a distribution of a portion of a company's earnings, usually quoted in terms of the

dollar amount each share receives (such as 25 cents per share). The indicated yield is often used as a
forecasting technique to estimate a stock's annual dividend yield or the yearly earnings investors
can expect for a particular stock. Many stock tables included in financial newspapers, such as the
Wall Street Journal, include the indicated dividend of each stock to alert investors to the annual
cash returns they might be able to expect. Because common stock dividends can change, instead of
remain constant, (stockholders may receive larger dividends if earnings rise or smaller dividends if
earnings drop, for example) the indicated yield is an estimate only.

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