Trailing Twelve Months (TTM) Dividend
The total dividends a company has paid to shareholders in the last twelve months.
Understanding TTM Dividends
When we explore the concept of TTM, or Trailing Twelve Months, we’re delving into a method used to evaluate a company’s financial performance. TTM yield measures the dividend yield using the total income generated from dividend payments in the past twelve months.
Dividend yield is a financial ratio, and it indicates how much a company pays out in dividends each year relative to its stock price. To calculate it, we look at the dividends per share divided by the stock price.
The TTM yield gives us insight into the performance of these dividends over the last year without waiting for the fiscal year-end report.
Here’s a quick view of how TTM dividends might look:
Financial Data | Formula | Description |
---|---|---|
TTM Yield | Dividends per Share / Stock Price | Measures company’s dividend payments to shareholders over the past 12 months relative to its stock price. |
Our focus on TTM dividends is grounded on providing a more accurate picture of a company’s ongoing ability to generate income for investors. This is especially useful for understanding payouts that can be irregular or for catching up on a company’s recent financial performance.
Analyzing the TTM dividends alongside earnings and quarterly revenue gives us a more comprehensive sense of a company’s performance. While past dividends are not a guarantee of future payments, they do provide a historical basis for what investors might expect.
This is a helpful tool for comparing financial data across different companies or within the same company over different periods.