Considering Dividends in Toolkit 6
Posted by: Doug Gerlach 7/12/2012 2:02:04 PM

While BetterInvesting’s methods focus on company growth and the resulting share price appreciation, dividends can contribute to a portfolio's total return. Toolkit 6 can evaluate the history, safety, growth, and prospects of a company’s dividends.
While BetterInvesting’s methods focus on company growth and the resulting share price appreciation, dividends can contribute to a portfolio's total return. Toolkit 6 can evaluate the history, safety, growth, and prospects of a company’s dividends.
 
From the Toolkit 6 Visual Analysis screen, select Dividends in the Additional Graph Data to plot annual dividends on the graph. Are dividends steady or growing?
In Section 3, evaluate the percentage payout to determine how much of a company’s earnings are paid as dividends to shareholders. If dividends are excessive, the company may not have enough to reinvest in its growth or be able to raise dividends. Payout ratios vary by industry, so always compare a stock to its peers.
 
In Section 5, review a company’s current yield and projected future average yield using the forecast high and (if set in Preferences) average P/E Ratios. Adjust the projected payout if desired. How much will dividends contribute to a stock’s projected future total return? Once you own a stock, never base future decisions about holding or selling on the original dividend yield, though!
 
Quickly find the highest yielding stocks in a portfolio by sorting the Portfolio Review Report. Press the Shift key while clicking on the % Yld column header to display companies with the highest yields at the top of the report.

For more, check out this archived webinar video on "Diving into Dividends with Toolkit 6."