07-13-2015, 12:06 PM
D/E ratio: What is the industry current and 5/10 year average? What is the 5/10 year average for this company?
P/E ratio: This will also vary a bit by industry or what you are trying to do. Growth chasers may say a max of 30, most seem to say a max of 20, and a max of 15 is conservative.
Payment ratio (dividend yield?): Like a broken record, this varies by industry. REITs, utilities, telecoms, and tobacco tend to have higher average payout ratios. Outside those areas, 60% is a common threshold.
ROE: I don't pay this as much attention as I should.
Past and future 5 year growth: I would look up the "Chowder Rule". Essentially this is equal to (dividend yield + past 5 year dividend growth rate). Generally. for Telecom/Utilities stay above 8%, for all others stay above 12%.
I also break down the dividend growth rate here:
http://dividendgrowthforum.com/showthread.php?tid=1244
P/E ratio: This will also vary a bit by industry or what you are trying to do. Growth chasers may say a max of 30, most seem to say a max of 20, and a max of 15 is conservative.
Payment ratio (dividend yield?): Like a broken record, this varies by industry. REITs, utilities, telecoms, and tobacco tend to have higher average payout ratios. Outside those areas, 60% is a common threshold.
ROE: I don't pay this as much attention as I should.
Past and future 5 year growth: I would look up the "Chowder Rule". Essentially this is equal to (dividend yield + past 5 year dividend growth rate). Generally. for Telecom/Utilities stay above 8%, for all others stay above 12%.
I also break down the dividend growth rate here:
http://dividendgrowthforum.com/showthread.php?tid=1244