Forward Annual Dividend Yield
Returns the forward-looking dividend yield, calculated using the expected/declared future dividend and the current stock price.
Forward Yield = (Expected Annual Dividend / Current Price)
Forward vs Trailing Yield
| Metric | Based On | Best For |
|---|---|---|
| Forward Yield | Expected future dividends | Forward-looking analysis |
| Trailing Yield | Past 12 months dividends | Historical comparison |
Why Use Forward Yield?
- Reflects announced dividend changes
- Better for recently raised/cut dividends
- More accurate for income projections
- Used by most professional investors
Dividend Yield Categories
| Yield | Classification |
|---|---|
| > 6% | High yield (higher risk) |
| 3% - 6% | Above average |
| 2% - 3% | Average |
| < 2% | Low yield / growth focus |
Examples
=ForwardAnnualDividendYield("AAPL")=ForwardAnnualDividendYield("JNJ")=ForwardAnnualDividendYield("VZ")Symbol from cell reference
=ForwardAnnualDividendYield("VZ")*100When to Use
- Income investing analysis
- Dividend stock screening
- Projecting portfolio income
- Comparing dividend stocks
- After dividend increase/cut announcements
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need historical yield | dividend_yield() (trailing) |
| Need dividend amount | DividendPerShare() |
| Need ex-dividend date | ex_dividend_date() |
| Need payout ratio | DividendPayoutRatio() |
Common Issues & FAQ
Q: Why is the yield returned as a decimal?
A: The value is a decimal (0.025 = 2.5%). Multiply by 100 for percentage:
=ForwardAnnualDividendYield("SYMBOL")*100
Q: Why might forward yield differ from trailing yield? A: Forward yield differs when:
- Company recently raised the dividend
- Company recently cut the dividend
- Dividend increase is expected
- Stock price has moved significantly
Q: Why might forward yield be NA or 0? A: The company either:
- Doesn't pay dividends
- Has suspended dividends
- Has no forward guidance on dividends
Q: Is a higher yield always better? A: Not necessarily. Very high yields (>6-8%) may indicate:
- Dividend cut risk
- Stock price decline
- Financial distress Always check the payout ratio and company fundamentals.
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