WORK IN PROGRESS
I introduced in previous post "Single Factor Dividend Income Model. Part 1." an empirical model for income oriented stock investors.
Obviously income depend on initial yield of stock Yo=D/P, where D is dividend and P is stock price. On the first glance Yo is a simple number and nothing to discuss here.
In this communication I'll describe 1) Yo complexity and 2) how Yo affects DGi safety.
D - look back or forward?
P - visible, opague and hidden factors. Time value of money.
Examples of dividend suspension/cut AFTER announcement: BP after disaster in 2010, Otelco Inc. (OTT) - 4/20/2012