Trial subscriber - trying to create Dividend income screen
Not sure whether to use Yield% , Rolling Yield%, Rolling Yield% 1yr, 2yr etc.
I've read the definitions but still confused as to which is most practical
Regards
John
I cannot help you specifically but you can get some ideas from these screens perhaps - https://www.stockopedia.com/screens/category/income-investing-3/
Yield%: Historic so entirely backwards looking. Presumably if you are interested in DY you want future dividends?
Rolling Yield%: Partly historic, partly future looking, weighted by proximity to future. This is the one, potentially in combination with rolling 1yr (i.e. rolling 1yr > rolling to ensure no cuts forecast ). I think rolling is most relevant.
Rolling Yield% 1yr, 2yr: Entirely future looking but dependent on analysts forecasts. 2yr always seems a long time out to me ...
I agree with HumourMe. Maybe the definition of "rolling" isn't quite clear to you since it is not explained in the ratio definitions. But you can look how it is defined here: https://help.stockopedia.com/t...
Personally I use the rolling yield for my DivGrowth-Screen.
Yep 1 yr rolling yield for me too - I do look at the 2 year as well but as HumourMe says it's a bit of a guess and also not always available
A word of caution when using a screen which uses forward and / or rolling yields. The treatment of special dividends is a bit inconsistent between the trailing (where specials don't appear to be included) and forward measures where they often are. You will need to decide whether the inclusion of specials is a valid part of yield based on your read of the company's divi / capital management policy
If it is any comfort, Yield % and Yield % Rolling 1y are very similar so it probably will not make a big difference which you use. (Probably true of the 2 year one too but I don't have any data for that one.)
Below is a scatter plot of Yield % versus Yield % Rolling 1y. As you can see it is quite close to a straight line. Although you might argue that it is the ones where the result is different that matter! In which case of course there is no reason why you can't include both rules and fine tune them.
I normally use some version of dividend forecasts which deliver forward yields when making selections for a high yield strategy. Stockopedia's Rollling 1y is good for that.
It is important to be aware though that any selection method based on forecasts has both advantages and disadvantages compared with using actual historical figures. The obvious difference is that the latter is a fact whilst forecasts are essentially guesswork, the net view of a number of analysts, and thus open to error. But on balance I prefer to use forecasts, warts and all.
Also, I counsel against relying solely on database figures. Whilst Stockopedia's tables are an excellent initial selection guide which I use all the time, you really should go back to the latest original company accounts and any subsequent news to check on your database selections.
That's because quite often there exists information that has not been incorporated into the forecasts and so those forecasts can lag events. For example a company may have announced a future dividend rise or cut and this figure may differ from the forecast but will be more reliable.
