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Dividends: what the metrics mean

Dividend yield, payout growth and what share of earnings a company pays out to shareholders.

Dividend Yield (TTM) — dividend yield

Dividends paid over the last twelve months to the current price. A high yield comes in two kinds: a durable stream bought cheaply — and a fallen price ahead of a dividend cut, which is why it is always read next to the payout ratio and coverage.

4 Year Average Dividend Yield — the 4-year average yield

What to compare today's dividend yield with. A current yield well above its four-year average means one of two things: the stock fell more than the dividend did — or the market expects the dividend to be cut.

Dividend Yield (FWD) — expected yield

Dividends expected over the next twelve months to the current price. Below the TTM yield — a cut in payouts is expected, above — an increase.

Dividend Yield (FY2) — yield the year after next

The expected dividend yield of the second forecast year. Together with FWD, it shows whether analysts expect the company to keep raising its dividend.

Dividend Per Share Growth (FWD) — expected dividend growth

How much analysts expect the dividend per share to rise next year.

1 Year Dividend Growth Rate (TTM) — dividend growth over the year

How much the dividend per share grew over the last twelve months versus the previous twelve.

Dividend Growth Rate (TTM) — dividend growth rate

The current rate of payout increases per share over the last twelve months.

Dividend Growth Rate 3Y (CAGR) — dividend growth over 3 years

The average annual rate of dividend increases over three years. A longer window is steadier than a single year: one missed or shifted payment does not flip it.

Dividend Growth Rate 5Y (CAGR) — dividend growth over 5 years

The average annual rate of dividend increases over five years — a window that includes the 2020 downturn.

Dividend Growth Rate 10Y (CAGR) — dividend growth over 10 years

The average annual rate over ten years: a check on whether the company's dividend policy has survived at least one full cycle.

Consecutive Years of Dividend Growth — years of dividend increases in a row

Not a percentage but a count of years: how many years in a row the company has raised its payout. Twenty-five or more is what the market calls a “dividend aristocrat”; for such a company a dividend cut means admitting defeat, so its payout is cut last.

Dividend Per Share Growth FY1–FY3 (CAGR) — dividend growth over 3 years

The average annual dividend growth expected over the next three forecast years.

Cash Dividend Payout Ratio (TTM) — share of earnings paid as dividends

What part of earnings goes to shareholders as payouts. A low value leaves room for both growth and a bad year; above 100% means the dividend is paid not from earnings but from savings or debt.

Dividend Payout Ratio (TTM, Non-GAAP) — payout on adjusted earnings

The same, but from earnings without one-off items. For a company that has just taken a large write-off, the GAAP version shows a payout “bigger than earnings”, even though there was plenty of cash for it.

Dividend Yield to Payout Ratio (TTM) — yield per unit of payout

Dividend yield divided by the share of earnings it takes. Answers whether the yield is costly for the company: a high value means a large yield with a modest burden on earnings.

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