BC_MBA_student

Thanks AF buddies. My question basically arose after reading The Little Book That Beats the Market which espouses the Earnings Yield (specifically EBIT / Enterprise Value) as the key metric. However, another line of thinking that I was reading states that if you dissect long run returns to equities, then it is the dividend yield that is crucial because you receive hard cash. I'm trying to figure out a set of screens. I'm conscious that earnings yield as stated is pre-tax and debt distortions which is helpful in creating a level playing field. But cash is cash is cash. And paying cash keeps companies honest, sorta. Realise that I need to do more reading into this and may be losing sight of something basic, but thought I would throw it out there.