|It depends on your perspective:|
personally, my cup runneth over...
When selecting a dividend share, the three numbers that a DIY Income Investor should look at first are:
- dividend yield (dividend / share price)
- dividend cover (earnings or profit / total dividends)
- p/e ratio (price / earnings per share)
To underline, this is only the starting point for doing your own research - but these are important numbers to consider, giving an indication of the likely attractiveness and sustainability of the dividend.
And recent academic research underlines the importance of these ratios in forecasting stock returns...