How to Calculate Average Dividend Yield

Dividend Stock research

What We Have Learned So Far It is very important when investing to not only evaluate a company against others in its sector or industry, but also against itself. In previous articles, we have discussed the dividend payout ratio, free cash flow, Z-Score and Return on Invested Capital (ROIC). All of these metrics are used as a way to evaluate stocks against their peer group, but also against themselves at

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The Dividend Payout Ratio Explained

Evaluating the dividend payout ratio lets us focus on companies that have enough internal growth to give us those dividend increases that we want each year. As we know, these dividend increases will help our portfolio income beat inflation over time and provide us with a growing income in retirement. How To Calculate The Payout Ratio The dividend payout ratio is calculated by dividing the dividend paid by the net

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