Forward Dividend Yield

The forward dividend yield is a measure of the expected dividend yield on a stock based on the current stock price and the expected dividend payout. It is calculated by dividing the expected annual dividend by the current stock price.

The forward dividend yield is a useful tool for comparing stocks with different dividend yields and for evaluating the attractiveness of a stock as an investment. A stock with a high forward dividend yield may be more attractive than a stock with a lower forward dividend yield, all else being equal.

However, it is important to note that the forward dividend yield is only an estimate of the future dividend yield. The actual dividend yield may be higher or lower than the forward dividend yield. This is because the expected dividend payout may change, or the stock price may change.

The forward dividend yield is also a useful tool for tracking the performance of a stock over time. By comparing the forward dividend yield of a stock to its historical forward dividend yield, you can see how the stock's dividend yield has changed over time. This information can be helpful for making investment decisions.

Here are some additional things to keep in mind when using the forward dividend yield:

* The forward dividend yield is based on the current stock price and the expected dividend payout. If either of these values changes, the forward dividend yield will also change.
* The forward dividend yield is only an estimate of the future dividend yield. The actual dividend yield may be higher or lower than the forward dividend yield.
* The forward dividend yield is a useful tool for comparing stocks with different dividend yields and for evaluating the attractiveness of a stock as an investment. However, it is important to use the forward dividend yield in conjunction with other factors when making investment decisions.