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yeild vs projected yeild - Printable Version

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yeild vs projected yeild - ronn38 - 04-10-2014

I think I generally get the difference, but I was looking at GM today (became a 5 star stock) and as I'm interested in a little exposure to the auto industry (Ford and GM)l; I took a look at the MS article. I notice they listed a yield of .89%, which wouldn't interest me, but a projected yield of 3.57%, which does.

I'm not sure how they are arriving at such a radical difference... can someone help me fog here?

Thanks,

Ronn


RE: yeild vs projected yeild - hendi_alex - 04-10-2014

Yield is usually stated as 'forward yield' or TTM yield (trailing twelve month). Since GM only started paying a dividend last quater, TTM is 30 cents for a yield of roughly .30/34 = .88%. But the forward yield, assuming a continuation of the 30 cents dividend or $1.20 annual roughly gives a yield of $1.20/34 = 3.5%.


RE: yeild vs projected yeild - ronn38 - 04-10-2014

Ahhh, the newest of the dividend, of course!

Many Thanks!

Ronn