How to calculate cost of capital, wacc and compare it with whole
Over the past two years, Company X has paid out a total of $3.20 in dividends to its shareholders. At the time of each payment, this represented 0.30% of net income and 1.15% of the stock price respectively. This indicates that while investors can expect some consistency in dividend payments; they are not likely to see significant increases due to the limited size of their returns.
Furthermore it is worth noting that this firm’s payout ratio (dividends as a fraction of net income) has remained fairly stable over the last two years which suggests that management is content with their current level of distributions and may not be willing to raise them significantly in the near future.
Ultimately these figures provide important insight into how well this company is performing financially as well as what type of return investors can expect from investing in its stock going forward. By keeping track of such data, individuals can make more informed decisions when considering any given investment opportunity.