Factors Directory

Quantitative Trading Factors

Dividend Yield

Value Factor

factor.formula

Dividend Yield =

in:

  • :

    The total amount of cash dividends distributed in the last 12 months (Trailing Twelve Months, TTM). It reflects the total amount of cash income distributed to shareholders by the company in the past year. This value is usually calculated by adding up the dividend data of four consecutive quarters.

  • :

    The total market value of a stock is equal to the current market price of the stock multiplied by the total number of issued shares. The total market value reflects the market's assessment of the company's overall value.

factor.explanation

Dividend yield is an important indicator for evaluating the value and earnings potential of a stock. A high dividend yield is generally considered a signal that the company is undervalued and attractive for investment, but investors need to consider the company's fundamentals, industry prospects and financial health to avoid falling into the high dividend yield trap. In addition, dividend yield can also be used to compare the investment returns of different stocks and help investors allocate assets. It should be noted that dividend yield is affected by many factors such as market sentiment, macroeconomic environment and the company's own operating conditions. Therefore, it should not be used alone as the basis for investment decisions.

Related Factors