Thursday, August 23, 2007

Dividend Yield and Payout Yield

Confused Capitalist readers know that I'm a fan of dividends, and consider them to be one of the stronger indicators of a firm who's total return is likely to outperform the broader market into the future.

While the above remains true, one also has to consider the net payout yield, which is the total returned to shareholders by dividends and by the net of share issuance's and re-purchases.

Note: If you're on a blog aggregator, you can visit The Confused Capitalist here (or here: http://confusedcapitalist.blogspot.com/) for additional articles and exclusive content!

There's more and more evidence available to suggest that this is even a better predictor of excess future returns than dividend yield alone. Here are two resources in that regard:

World Beta Posting and PayoutYield.com



JW

The Confused Capitalist

No comments: