5 Metrics That Are Far More Important Than a Stock’s Dividend Yield
From Nasdaq: 2024-05-10 05:16:00
When evaluating dividend stocks for passive income, it’s important to look beyond just yield. Metrics like free cash flow yield, payout ratio, capital return yield, consecutive years of dividend increases, and total return can provide a more comprehensive view of a company’s financial health and potential for growth. Companies like Apple and Procter & Gamble prioritize stock buybacks and dividend hikes, showcasing the importance of a quality dividend and capital return program. It’s crucial for investors to analyze these metrics before choosing dividend stocks for their portfolio.
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