The STRIDE Blog

STRIDE Platform Updates: Dividend Yield and Six Month ADTV

stride-image-featured.jpgAt STRIDE, our subscribers actively contribute to features that they would like to see. We are happy to launch two new features: dividend yield graph and six month Average Daily Trading Value (ADTV). Below is a brief description of each of them, as well as an example of how to use them in your stock screening with STRIDE.

Platform Update: Dividend Yield

What is dividend yield?

According to Investopedia, a dividend yield is:

"A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the dollar value of dividends paid in a given year per share of stock held by the dollar value of one share of stock. The formula for calculating dividend yield may be represented as follows:

= Annual Dividends Per Share / Price Per Share

Yields for a current year are often estimated using the previous year’s dividend yield or by taking the latest quarterly yield, multiplying by four (adjusting for seasonality) and dividing by the current share price."

What's new?

The STRIDE engine always had access to dividend yield, but we've now added in a more intuitive graph specifically based on dividend payout date. You can also now find dividend data in the primary interactive line graph on each company page.

To see the new dividend yield graph, simply click on "Dividend Yield" on any company page under "Other Valuations" to launch a chart showing a more detailed dividend breakdown.  

Truworths Dividend Yield overview

Truworths Dividend Yield Graph Screen

The dividend yield graph is based on the pay date (i.e. the yield that this single dividend has on the pay date). It is important to note that we are not trying to annualise the dividend yield in the graph. If you need to get a view of the annual yield (year on year) then we have a special table in the Ratios section which uses the year end close price.

Dividend Yield Table.pngThe new dividend yield graph will breakout the special dividends in the same view so that you can instantly see them relative to the normal dividend.

Div Yield Special Dividend Graph.png

 

Platform Update: Six month ADTV

What is ADTV?

ADTV stands for average daily trading volume and is described by Investopedia as:

"The average daily trading volume (ADTV) is the amount of individual securities traded in a day on average over a specified period of time. Trading activity relates to the liquidity of a security--when average daily trading volume is high, the stock can be easily traded and has high liquidity; if trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it. As a result, average daily trading volume can have an effect on the price of the security."

6m ADTV is simply the average daily trading volume over six months. 

What's new?

If you look at the ‘Ave. Vol six months’ block on the right of the chart (on any company page), it now has 6m ADTV on it. We calculate this by taking the average daily number of shares traded over the previous six month period multiplied by the last close price. By looking at this, you can quickly understand the size of your trade relative to the market activity. This indicator can be very helpful when buying or selling thinly traded securities where even small investors could end up being the market maker for the day. Some examples of where to find and how to analyse 6m ADTV are: 

Apple Inc. (AAPL): 

Apple ADTV 6m overviewApple ADTV 6m detail

$4B a day! It is going to take an investor like Warren Buffett or a large fund to move this price.

Truworths International Ltd. (TRU): 

Truworths ADTV 6m overviewTruworths ADTV 6m detail

R217m (approximately US$ 16m). A small money manager could make / move the market for this share. 

If you have a feature that you think could improve STRIDE then please feel free to reach out using the contact page and let us know.

If you enjoyed hearing about these STRIDE updates, feel free to sign up for a live demo of STRIDE and its detailed functionality for stock screening and analysis. 

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Topics: STRIDE, 3D Value Investing

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