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Dividend Growth Split (TSX:DGS.PR.A.PFD) Forward Rate of Return (Yacktman) %

: -31.43% (As of Dec. 2021)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Dividend Growth Split's forward rate of return for was -31.43%.

The historical rank and industry rank for Dividend Growth Split's Forward Rate of Return (Yacktman) % or its related term are showing as below:

TSX:DGS.PR.A.PFD' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -46.23   Med: -46.19   Max: -25.53
Current: -31.43

During the past 13 years, Dividend Growth Split's highest Forward Rate of Return was -25.53. The lowest was -46.23. And the median was -46.19.

TSX:DGS.PR.A.PFD's Forward Rate of Return (Yacktman) % is not ranked
in the Asset Management industry.
Industry Median: 5.69 vs TSX:DGS.PR.A.PFD: -31.43

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Dividend Growth Split (TSX:DGS.PR.A.PFD) Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Dividend Growth Split's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dividend Growth Split Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -104.48 -56.98 -19.85 -31.43

Dividend Growth Split Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -19.85 - -31.43 -

Dividend Growth Split (TSX:DGS.PR.A.PFD) Forward Rate of Return (Yacktman) % Competitive Comparison

For the Asset Management subindustry, Dividend Growth Split's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Dividend Growth Split (TSX:DGS.PR.A.PFD) Forward Rate of Return (Yacktman) % Distribution

For the Asset Management industry and Financial Services sector, Dividend Growth Split's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Dividend Growth Split's Forward Rate of Return (Yacktman) % falls into.



Dividend Growth Split Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Dividend Growth Split's Forward Rate of Return of Dec. 2021 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0/+0
=0 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Dividend Growth Split  (TSX:DGS.PR.A.PFD) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of Book Value per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Dividend Growth Split Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Dividend Growth Split's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Dividend Growth Split (TSX:DGS.PR.A.PFD) Business Description

Dividend Growth Split logo
Traded in Other Exchanges
Address
181 Bay Street, Brookfield Place, Suite 2930, P.O. Box 793, Bay Wellington Tower, Toronto, ON, CAN, M5J 2T3
Dividend Growth Split Corp is a Canada based mutual fund corporation. It invests in an equal-weighted portfolio comprised of large-capitalization Canadian equities that have a high dividend growth rate. The investment objective of the company is to provide holders of preferred shares with fixed, cumulative, preferential quarterly cash distributions and to return the original issue price to their holders, and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in net asset value per Class A share.

Dividend Growth Split (TSX:DGS.PR.A.PFD) Headlines

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