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Beware of dividend payout history - Printable Version

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Beware of dividend payout history - dmonte - 11-15-2019

Beware to check the dividend payout history. The simple Fwd or ttm yield number could be misleading.

Recently I am studying to start my first Canadian dividend ETF position and XGRO.TO was in my observation bucket.

And until tonight I really got chance to spent time to read the details of this ETF further, and found the dividend yield ratio is bit misleading.

The Fwd yield is about 6% now which look too good to be true. It's true before I open up the dividend history and then realized the actual yield is less than 2% if we ignore the noise that the ETF occasionally bump the yield likely every 18 months or 2 year or so. Which makes the yield really unstable depends on the timeframe we calculate.

RE: Beware of dividend payout history - crimsonghost747 - 11-15-2019

Indeed. This is also good advice for the rest of the numbers you look at: Revenues, EPS, cash flows... pretty much anything. Instead of only looking at the change percentage compared to the previous year or quarter, take a look at the actual numbers for the past few years and you will see much more.

RE: Beware of dividend payout history - dmonte - 11-16-2019

Yes, read the history is important while studying!