Forward Dividend Yield
Forward dividend yield is a measure of estimating the future yield of a stock. The calculation is done by taking the first dividend payment and annualizing it and then divide that number by the current stock price. In other words if the first quarterly dividend was $0.04 and the current stock price was $10.00 the forward dividend yield would be (.04*4)/10= 1.6%.
The trailing dividend yield is done in reverse by taking the last dividend annualized divided by the current stock price.
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Famous quotes containing the word yield:
“Is it not the chief disgrace in the world, not to be an unit;Mnot to be reckoned one character;Mnot to yield that peculiar fruit which each man was created to bear, but to be reckoned in the gross, in the hundred, or the thousand, of the party, the section, to which we belong; and our opinion predicted geographically, as the north, or the south?”
—Ralph Waldo Emerson (1803–1882)