Read? Long-term investing and short-term trading? (3)
Read? Best Dividend Strategy?
What is dividend payout ratio?
By Stock Market Investors
Financial experts' opinions on the importance of dividend payout are mixed. Some say it is an important measurement, whereas others strongly disagree.
The meaning behind Dividend payout ratio (DPR) is the money that is paid out in the form of dividends by the company to its shareholders.
Dividend Payout Ratio Formula
In order to make the appropriate calculations for the dividend payout ratio you should use the following formula:
DPR = Dividends per Share / Earnings per Share
Consider the following example. Company ABC has paid its shareholders $1 per share in the form of annual dividends. Its earnings per share were $2.5. So, its dividend payout ratio will be 40%.
Now that you have got some percentage, you probably wonder how exactly you should interpret it and whether it is good for the company.
Low dividend paying or the absence of such may be explained by the fact that the company has decided to grow and as a result it needs money to fund its growth. These funds can come from dividends and the company may decide to retain some.
On the other hand, companies that pay high dividends to their shareholders may do this since they have reached their maturity and there is no room for growth. As a result, the most efficient and effective use of the profits will be to return them to the company's shareholders.
Therefore, when you interpret a DPR you should do it in light of the company itself and the industry in which it operates.
Secret to successful long-term investing?
'For most markets, the high-yield low-payout strategy was the best performing strategy followed by the non-dividend paying stocks for a few markets,' the analysts said.
In Singapore, stocks that paid no dividends showed the biggest returns over the period examined. But investing in high-yield, low-payout stocks was still the best-performing strategy over a longer period of 15 years examined in an earlier study, the Credit Suisse analysts said.
The secret has already been made known to you if you are a long-term investor who has more than 15 years ahead of you. You just need to be very patient and keep a watch-list of current stocks with medium dividend yield 4-6% and low dividend payout ratio of less 33% and wait for the day when Mr Market becomes so depressed and give them at high-yield low-payout to you.
【換台幣】邊間可以兌4算?近20間找換店、銀行匯率比較(2024年3月更新) – 香港經濟日報 – 理財 – 精明消費
-
台幣自今年年初以來持續貶值,匯率接近去年年中低位,利好赴台旅遊。計劃到台灣要準備換台幣,到底銀行還是找換店會更著數?
目前,港幣$1大約最多能兑換到3.75至4元新台幣,以現鈔來對比,找換店匯率大多優 Read More
52 minutes ago
No comments:
Post a Comment