Dividend Yield

What it is

Yield = annual dividend per share / current price. It's the cash return a business pays you each year as a percentage of what you'd pay to own one share today.

Why it isn't a buy signal on its own

A very high yield often means the share price has fallen because the market expects the dividend to be cut. The yield you actually receive is the future dividend, not the trailing one.

Look for

• A track record of stable or growing dividends (5+ years).
• A payout ratio below 70% so the dividend has room to grow.
• A balance sheet strong enough to fund the dividend through downturns.

How Cowry uses it

Two of the five Quality Framework factors look at dividends: Dividend Record (5y growth) and Current Dividend (yield). Both must be paired with the financial strength factor before a yield gets credit.