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| Greenhill & Company Incorporated (GHL) Passes Through 5% Yield MarkBy Dividend Channel Staff, Tuesday, November 22, 3:15 PM ET
In trading on Tuesday, shares of Greenhill & Company Incorporated (NYSE:GHL) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.80), with the stock changing hands as low as $35.71 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2011 and each share was worth $80.78 on that date, a mere $2.51 or 3.2% increase over eleven years. But now consider that you collected a whopping $9.69 per share in dividends over the same period, increasing your return to 20.27%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.7%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Greenhill & Company Incorporated (NYSE:GHL) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Greenhill & Company Incorporated, looking at the history chart for GHL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
According to the ETF Finder at ETF Channel, GHL makes up 3.39% of the iShares Dow Jones U.S. Broker-Dealers Index Fund ETF (AMEX:IAI) which is trading lower by about 0.6% on the day Tuesday. See what other ETFs contain GHL » Free Trial: ''ETF CHANNEL FLEXIBLE GROWTH INVESTMENT PORTFOLIO'' The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors — anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors, commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow the performance trail wherever it leads us.
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