The Graham Number is a calculation used to see if a stock is trading at its fair value. It’s named after the father of value investing Benjamin Graham. Graham, known as the “Dean of Wall Street”, began teaching value investing at Columbia Business School in 1928. Together with David Dodd, they wrote their famous book Security …
What is the Graham Number and Why it Still Matters Read More »
What is it? The payout ratio, or dividend payout ratio, is how much money the company earns (EPS) compared to what it is actually paying out to its shareholders in dividends (DPS), typically expressed as a percentage. As a formula it looks like this: For any dividend investor this is perhaps one of the most …
Now that we have an understanding of what a dividend is lets look into the yield. A yield is the dividend per share divided by the current price of the stock expressed as a percentage. Here’s an example. Say you own shares of DIVICENTS CORP! and they pay out a yearly dividend of $1 per …
Simply put, a dividend is a payment you receive from a company you own. It’s your share of the profits! Let’s pretend you just opened up your own discount brokerage account. Now, for your first move you buy 100 shares of DIVICENTS CORP! for $10 per each share. It’s a great company that pays out …