Dividend Yield - Forward Dividend Yield

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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