Leading dividend yield

CFA Level II
#1

What’s the formula for leading dividend yield using r and g?

#2

div yeild of justified PE? leading P/E is b/r-g trailing P/E (b(1+g))/(r-g) so i guess div yield would be reciprocal of the above

#3

I haven’t come across “leading dividend yield” Where did you see that?

#4

CFA=NOLIFE Wrote: ------------------------------------------------------- > div yeild of justified PE? > > leading P/E is b/r-g > > trailing P/E (b(1+g))/(r-g) > > so i guess div yield would be reciprocal of the > above Should be 1-b

#5

I had different equations for the justified P/E’s than did CFA-NOLIFE… so you might want to check equations should be leading P/E of (1-b)/(r-g) and trailing (1-b)(1+g)/(r-g)… I do agree with the reciprocal part although…

#6

(r-g) / (1+g) is dividend yield, i think, but leading dividend yield, hummm,

#7

the above formula is d(0)/p (0) and should be used as far as i can recall, i havent seen " leading dividnet yield " The book only says div yield Key point to remember is High dividnet yield is related to low growth sticks , hence "VALUE " style

#8

tautke787 Wrote: ------------------------------------------------------- > I had different equations for the justified P/E’s > than did CFA-NOLIFE… so you might want to check > > equations should be leading P/E of (1-b)/(r-g) > and trailing (1-b)(1+g)/(r-g)… > > I do agree with the reciprocal part although… actually just realized my response was incorrect… this would give you the earnings yield… like everyone else not sure about the leading div yeild… and not going to worry about it…

#9

No I think he means D/P, meaning (sum of expected dividends for next 4 quarters)/price of stock.

#10

yseric and Chad are right, there is no mention of leading dividend yield. Dont flood your brain with unecessary imaginary situations, focus on whats given. However, if we wanna logically replace d1(as in next period dividend) and calculate forward dividend over current price, then from the same formula we get r-g (the 1+gs will cross out). Again, Im not sure if this makes any sense, but since there is no need to consider it in the first place , i`ll stick to the current dividend yield and put my mind at peace.