Forward vs. Trailing Dividend Yield

Forward Dividend Yield: This yield is based on the expected dividends over the next year. https://gallopingvideo.com/ It considers the company’s announced future dividend payments, providing a projection of the yield.
- Example: If a company announces an expected annual dividend increase to $5 per share and the current stock price is $100, the forward dividend yield would be 5%.
Trailing Dividend Yield: This yield is based on the dividends paid over the past 12 months. It provides a historical perspective on the dividend yield.
- Example: If a company paid $4 in dividends over the past year and the current stock price is $100, the trailing dividend yield would be 4%.