Key Metrics to Evaluate Dividend Stocks

When evaluating dividend stocks, investors should consider several key metrics:

Dividend Yield: This is the annual dividend payment divided by the stock’s GPU 관련주 current price. It provides a percentage that represents the income return on investment.
Payout Ratio: This metric indicates the proportion of earnings paid out as dividends. A lower payout ratio suggests that the company retains more earnings for growth, while a higher ratio may indicate a commitment to returning profits to shareholders.
Dividend Growth Rate: This measures the annualized percentage growth of dividend payments over a specified period. Companies with a consistent history of increasing dividends can offer growing income streams.
Dividend Coverage Ratio: This ratio compares earnings per share (EPS) to dividends per share (DPS) and indicates whether the company can comfortably cover its dividend payments from earnings.