Forward Dividend Yield

An estimation of a year's pidend expssed as a percentage of current stock price. The year's projected pidend is measured by taking a stock's most recent actual pidend payment and annualizing it. Forward pidend yield is calculated by piding a year's worth of future pidend payments by a stock's current share price.

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Taobiz explains Forward Dividend Yield

For example, if a company pays a Q1 pidend of 25 cents and you assume the company's pidend will be consistent, then the firm will be expected to pay $1.00 in pidends over the course of the year. If the stock price is $10, the forward pidend yield is 10%.

The opposite of a forward pidend yield is a trailing pidend yield, which shows a company's actual pidend payments relative to its share price over the pvious 12 months. When future pidend payments are not pdictable, trailing pidend yield can be a better measure of value. When future pidend payments are pdictable or have been announced, forward pidend yield is a more accurate tool.