Note that a few industries, such asreal estate investment trusts (REITs)andmaster limited partnerships (MLPs), do not use earnings or free cash flow to calculate their payout ratios. They rely instead on industry-specific metrics likeadjusted funds from operations (AFFO)and distributable cash flow...
Capital reductions are done for a variety of reasons. These include creating distributable reserves, so as to pay dividends in the future, returning surplus capital back to shareholders, when going through a de-merger, simplifying the capital structure to be more efficient, and reducing or eliminat...
The mutual fund declares dividends based on the distributable surplus it has accumulated. Dividends are distributed at the fund’s discretion and become taxable as soon as they’re paid out to the investors. Investors pay tax on dividends when they receive the dividend from their mutual funds. ...
We must calculate these numbers ourselves. It’s a bit of work, sure, but it’s also how we bag big dividends that most investors don’t even know about. To evaluate the dividend safety of a REIT, I add up per-share FFO on my own, then use that to calculate price-to-FFO (...