The slightly unconventional ways in which Greenblatt calculates earnings yield and return on capital also involve some good common sense and are particularly interesting given the recent credit crisis.
Unfortunately, this kind of investment generally takes much longer to yield a return, and is not nearly as likely to do so as the others.
FORBES: One Kind of Innovation That Could Save American Business
My Greenblatt-based model likes its 30.6% earnings yield and 63.7% return on capital.
FORBES: Five Stocks Including Herbalife That Greenblatt's Magic Formula Should Love
So as we work down our debts, the hope of the government has been that the Chinese could be persuaded to invest some of their vast surpluses in our infrastructure, in a way that would ease the pain of our economic slowdown and would yield a decent return to China over the long term.
You add the dividend yield to your stock price increase to produce a total return that incorporates both the stocks yield and its capital appreciation.
Its earnings yield is over 100% and its return on capital is over 60%.
FORBES: Five Stocks Including Herbalife That Greenblatt's Magic Formula Should Love
Add two points of real growth to even a skimpy 6% yield and you have an 8% real return.
Well-designed incentive prizes can yield a high return on the dollar and can reach beyond the usual suspects to increase the number of entrepreneurs and citizens tackling a problem.
WHITEHOUSE: Using Incentive Prizes to Tackle the Middle-School Math Gap | The White House
As markets sit out the summer in the hope of a more active final three months of 2012, LCD has analysed high-yield performance in terms of total return and price movement.
FORBES: European High-Yield Bond Market: Performance, Though Volatility
Ensuring the quality of Medicaid data undoubtedly can help fraud-detection programs yield a positive return on investment, and also can assist the government in its efforts to detect those who are committing fraud.
FORBES: Medicaid Claims Data: Is it Really Health Care Fraud?
But he said you also needed to "make the right judgements" about where to spend the money in order to "make a difference" and said the government's recapitalisation of banks had made a difference and he hoped would eventually yield a return to the government.
T-bills yield a negative real rate of return now and 10-year Treasuries yielding 4% don't light my fire.
In my Greenblatt model, I calculate return on capital and earnings yield in the same ways that Greenblatt lays out in his book.
Gallardo told the investors that she would purchase condominiums and that these properties would quickly yield high rates of return: a 100 percent in only 30 days.
White Mountains has a negative rate of return of 1.97% and earnings yield of 11%.
FORBES: Martin Whitman's Third Avenue Value Fund: Four New Buys
Japanese investors seeking higher yield trade yens for Brazil reals and get an easy five percent return.
But first, let's take a step back and ask why one is focusing on yield rather than total return.
They back his firm stance, hoping he will not yield to nationalist demands and tinker with Spain's constitution in return for peace.
Add that to the current dividend yield and you've got about 3.5% of real return.
WSJ: Baby Boomers' Investment Returns Will Be Constrained, This Researcher Warns
The health care sector has the highest overall average dividend yield performance as the sector boasts a current yield of 4.59 percent and year-to-date total return performance of 17.4 percent.
Despite the rather dour comments from Lockhart, the tide appears to be shifting in the corporate bond market as liquidity has begun to return and both investment-grade and high-yield premiums over Treasury yields have begun to narrow in recent sessions.
The deal is expected to have an initial annual return of about 7%, above the 5% yield and lower that similar properties offer in larger markets.
That's a shame for investors, because around 90% of the market's long-term return can be linked directly to dividends--the basic yield and then the growth over time of that coupon.
On the 10 year auction launched on August 12, Smith bought at par for a yield of 2.84% and made 7 points plus the coupon for a return of almost 10%.
FORBES: Euro-Fright Triggers Record Profits In Treasury Bonds
In consequence pension funds and banks will no longer be able to give up some of their bond yield in return for insuring the capital against government default.
Furthermore, the Bank of America Merrill Lynch high-yield indices in the U.S. and in Europe confirm this pattern: the total return in the year to date stands at 9.28% in the U.S., versus 12.76% in Europe.
FORBES: European High-Yield Bond Market: Performance, Though Volatility
In a cash-balance plan, the company contributes a set amount of salary for each worker every year to a theoretical account for him (even though the money is actually managed in one big pot), and then credits his account with some guaranteed annual return--typically the yield on 30-year Treasuries.
To do a quick and dirty analysis of the expected return for junk bonds, all you need to do is look at the yield and subtract the default rate ( read why here).
By keeping the yield curve flat, QE2 pressures banks to make more higher-return loans as investing in treasuries and short-term facilities provides a lower and lower profit margin.
FORBES: The Fed Did Its Job, Now Washington Needs To Come Through With Fiscal Policy
应用推荐