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Financial Terms | |
Dividend yield (Stocks) |
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Definition of Dividend yield (Stocks)Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price.
Related Terms:Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Beta equation (Stocks)The beta of a stock is determined as follows: Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Bond Equivalent YieldBond yield calculated on an annual percentage rate method Capital gains yieldThe price change portion of a stock's return. Cash dividendA dividend paid in cash to a company's shareholders. The amount is normally based on ![]() cash dividendPayment of cash by the firm to its shareholders. Consigned stocksInventories owned by a company, but located on the premises constant-growth dividend discount modelVersion of the dividend discount model in which dividends grow at a constant rate. Convenience yieldThe extra advantage that firms derive from holding the commodity rather than the future. Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Cum dividendWith dividend. Cumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid Current yieldFor bonds or notes, the coupon rate divided by the market price of the bond. current yieldAnnual coupon payments divided by bond price. ![]() Current YieldThe percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield. Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the DividendA dividend is a portion of a company's profit paid to common and preferred shareholders. A stock DividendA payment a company makes to stockholders. Earnings before income tax. The profit a company made DividendThe payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period. DividendA payment made to shareholders that is proportional to the number of shares dividendPeriodic cash distribution from the firm to its shareholders. DividendAs the term dividend relates to a corporation's earnings, a dividend is an amount paid per share from a corporation's after tax profits. Depending on the type of share, it may or may not have the right to earn any dividends and corporations may reduce or even suspend dividend payments if they are not doing well. Some dividends are paid in the form of additional shares of the corporation. dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income. DividendUnlike dividends which are paid to company shareholders, participating insurance policy dividends are not based on the company's overall profits. Rather, they are determined by grouping policies by type and country of issue and looking at how each class contributes to the company's earnings and surplus. Dividend clawbackWith respect to a project financing, an arrangement under which the sponsors of a project ![]() Dividend clienteleA group of shareholders who prefer that the firm follow a particular dividend policy. For dividend discount modelComputation of today’s stock price which states that share value equals the present value of all expected future dividends. Dividend discount model (DDM)A model for valuing the common stock of a company, based on the dividend growth methoda method of computing the cost Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. Dividend incomeIncome that a company receives in the form of dividends on stock in other companies that it holds. Dividend limitationA bond covenant that restricts in some way the firm's ability to pay cash dividends. Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. Dividend policyAn established guide for the firm to determine the amount of money it will pay as dividends. Dividend PolicyThis policy governs Canada Life's actions regarding distribution of dividends to policyholders. It's goal is to achieve a dividend distribution that is equitable and timely, and which gives full recognition of the need to ensure the ongoing solidity of the company. It also specifies that distribution to individual policyholders must be equitable between dividend classes and policyholder generations, and among policyholders within any class. Dividend rateThe fixed or floating rate paid on preferred stock based on par value. Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Dividend rightsA shareholders' rights to receive per-share dividends identical to those other shareholders receive. Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 dividend yield ratioCash dividends paid by a business over the most DividendsAmounts paid to the owners of a company that represent a share of the income of the company. DividendsProfits paid out to shareholders by a corporation. Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per sharedividends paid for the past 12 months divided by the number of common shares Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest Effective annual yieldAnnualized interest rate on a security computed using compound interest techniques. Effective Annual YieldAnnualized rate of return on a security computed using compound Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Ex-dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend Ex-dividend dateThe first day of trading when the seller, rather than the buyer, of a stock will be entitled to ex-dividend dateDate that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend. Extra or special dividendsA dividend that is paid in addition to a firm's "regular" quarterly dividend. Flattening of the yield curveA change in the yield curve where the spread between the yield on a long-term Floor stocksLow-cost, high-usage inventory items stored near the shop floor, High-yield bondSee:junk bond. Homemade dividendSale of some shares of stock to get cash that would be similar to receiving a cash dividend. Indicated dividendTotal amount of dividends that would be paid on a share of stock over the next 12 months Indicated yieldThe yield, based on the most recent quarterly rate times four. To determine the yield, divide information content of dividendsdividend increases send good news about cash flow and earnings. dividend cuts send bad news. labor yield variance(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate); Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co. Liquidating dividendPayment by a firm to its owners from capital rather than from earnings. Listed stocksstocks that are traded on an exchange. Listed stocksstocks that are traded on an exchange. Margin account (Stocks)A leverageable account in which stocks can be purchased for a combination of material yield variance(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price); MM dividend-irrelevance propositionTheory that under ideal conditions, the value of the firm is unaffected by dividend policy. Non-parallel shift in the yield curveA shift in the yield curve in which yields do not change by the same Par yield curveThe yield curve of bonds selling at par, or face, value. Parallel shift in the yield curveA shift in the yield curve in which the change in the yield on all maturities is Perfect market view (of dividend policy)Analysis of a decision on dividend policy, in a perfect capital Preferred Stock Stock that has a claim on assets and dividends of a corporation that are priorto that of common stock. Preferred stock typically does not carry the right to vote. process quality yieldthe proportion of good units that resulted from the activities expended Production yield varianceThe difference between the actual and budgeted proportions Pure yield pickup swapMoving to higher yield bonds. Realized compound yieldyield assuming that coupon payments are invested at the going market interest Relative yield spreadThe ratio of the yield spread to the yield level. Reoffering yieldIn a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds Required yieldGenerally referring to bonds, the yield required by the marketplace to match available returns Residual dividend approachAn approach that suggests that a firm pay dividends if and only if acceptable Riding the yield curveBuying long-term bonds in anticipation of capital gains as yields fall with the Signaling view (on dividend policy)The argument that dividend changes are important signals to investors Special dividendAlso referred to as an extra dividend. dividend that is unlikely to be repeated. Spot curve, spot yield curveSee Zero curve. Steepening of the yield curveA change in the yield curve where the spread between the yield on a long-term Stock dividendPayment of a corporate dividend in the form of stock rather than cash. The stock dividend stock dividendDistribution of additional shares to a firm’s stockholders. Tax differential view ( of dividend policy)The view that shareholders prefer capital gains over dividends, Traditional view (of dividend policy)An argument that "within reason," investors prefer large dividends to Weighted average portfolio yieldThe weighted average of the yield of all the bonds in a portfolio. With dividendPurchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend. YieldThe percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest yieldthe quantity of output that results from a specified input Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |