Expected dividend yield

Expected dividend yield

Total amount of dividends received during the life of a futures contract or total dividends received for holding a particular stock one year. See: Current yield.

Expected Dividend Yield

The yield an investor expects to receive over one year when he/she purchases a stock or other security that pays dividends. The dividend yield is the amount an investor receives in dividends in one year divided by the purchase price of the security. The expected dividend yield is what the investor expects to receive at purchase, rather than what he/she actually receives. While calculating the expected dividend yield has a role in making investment decisions, it is important to note that the expected dividend yield may not match up with the actual dividend yield. See also: Expected return, Actual return.
References in periodicals archive ?
At the same time, 2TradeAsia said that for as long as business modelsmeet investors' expected dividend yield, capital appreciationpotential is present in equities to counter future inflation risks.
The index combines long positions in the Nomura Japan Equity High Dividend 70, Total Dividend Weighted comprising 70 stocks with a high expected dividend yield, with short positions in TOPIX futures as a market average index.
Post listing, we expect the market will likely focus on the expected dividend yield in the medium-term to value the company.
The attractive valuations of Qatari markets offer an opportunity for the investors to enter at the current levels coupled with an expected dividend yield of 5.2 per cent for financial year 2013."
While the expected dividend yield (based on the current share price) is only 2-3% for 2012-14E, that they are paying dividends is one more reason to hold onto the shares, in our view.
Batelco's expected dividend yield of 10pc is the highest in the GCC telecom sector, but competitive pressures in Bahrain will continue to hurt the company's earnings, Lakhotia wrote in a note.
Batelco's expected dividend yield of 10 percent is the highest in the Gulf Cooperation Council telecom universe, but competitive pressures in Bahrain will continue to hurt the company's earnings, Lakhotia wrote in a note dated Feb.
The stock trades at an attractive 7.4 times its 2011 earnings and a 2012 expected dividend yield of 6.) per cent.
The model assumes that stock prices will increase at the risk-free interest rate (B15) minus the expected dividend yield (B16), then plus or minus the price volatility (B12) assumed for the stock.
EXHIBIT QMDM PARTNERSHIP ASSUMPTIONS Partnership QMDM Assumption 1 2 3 Expected growth rate of underlying value 3% 3% 6% Expected dividend yield 3% 3% 0% Expected growth rate of dividend 2% 2% 0% Midpoint required return 15% 13% 21% Minimum holding period 3 2 5 Maximum holding period 6 4 10 Dividend Convention (E or M) M M n/a Concluded marketability discount 30% 15% 60% EQUATIONS 1 AND 2
We also estimated our regressions using dividends paid during the fiscal year ending after December 1993 as a proxy for a firm's expected dividend yield. Results are essentially identical to those presented later in Table 2.
Brennan's (1970) pretax CAPM states that a security's expected pretax excess return is positively and linearly related to its systematic risk and its expected dividend yield.

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