Unformatted text preview: 3.5-4% 3-3.5% 2.5-3% 2-2.5% 1.5-2% 1-1.5% 0.5-1% 0.01-0.5% 0 Dividend Yield Data from Value Line. The dividend yield for each stock is the annual dividends per share over the last four
quarters divided by the stock price at the time of the analysis. The first and perhaps most interesting statistic is the number of companies that do not pay
dividends. Of the 7100 companies in the sample, 5173 did not pay dividends. The second
is the variation in dividend yields among the companies that pay dividends. While the
average dividend yield across stocks that pay dividends is about 3.32%, this number is 25
pushed upwards by the presence of a few companies that have very high dividend yields
(8% or more). A more meaningful statistic is the median dividend yield among dividend
paying stocks, which is 2.54%.
Much has been said about how dividends paid by U.S. stocks have
decreased over time. In Figure 2.5, the dividend yield for U.S. stocks from 1960 to
2001 is reported:
Figure 2.5: Dividend Yields in the...
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This note was uploaded on 01/17/2012 for the course ECON 101 taught by Professor Econnorm during the Spring '11 term at Art Institutes Intl. Minnesota.
- Spring '11