ShareInvestor.com

Dividend Analysis

Dividend Analysis gives you a cross-sectional graphical representation of dividend-paying stocks over a ten-year horizon.

• Earnings against Dividend allows you to study the dividend history of a company comprising of both regular and one-off special dividend payments at a glance. You can easily tell whether a company is giving consistent dividends or steadily increasing their dividend payments over time. The chart enables you to examine the company's ability in generating cash from its operations and whether the company is able to sustain the cash dividend payments using its current year earnings. There are some companies which are giving more dividends then what they are earning each year and the chart allows you to spot these companies easily.
• Price Earnings Ratio against Dividend Yield enables you to further explore the relationship between price earnings ratio and dividend yield on the premise that the reinvestment of the company's earnings to generate future earnings growth has a positive impact on price earnings valuation. This is a measure of the market's anticipation of the company's future growth prospects or cash flow discounted to present value terms.
• Price Earnings Ratio against Dividend Payout Ratio enables you to study the relationship between price earnings ratio and dividend payout. The price earnings ratio is a function of expected earnings growth rate and return on equity and in the absence of growth opportunities, high dividend payout is positively associated with future earnings growth and hence better price earnings valuation. This is consistent with the over-investment of free cash flow by companies with low dividend payout.
• Dividend History displays the annual dividend payment history of the company along with the calendar period for which the dividend is proposed. Stable or increasing dividend payments over time demonstrate management's confidence in the company's future prospects and are hence preferred while a history of dividend cuts is a drawback.