2007-10-15

How to Value Shares (3)

Dividend yield (2)

Traditionally, investors prefer companies with high dividend yields to those with lower ones.


A high dividend yield implies that the share is under-priced, and that

future dividends will not be higher than previous ones.


A low dividend yield, on the contrary, means the share is over-priced

and future dividends might be higher.



By David Opoku

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