Never trust only one source for data.
With all the media available on line, one might think that they are all the same. But beware, they are not!
We have touched on this topic a few years ago. Different sources means different data.
In their defense, many websites get their data from a few sources. And the algorithms that are used seem limited. As the old saying goes (it’s an old saying, meaning one never hears it anymore): “Garbage In, Garbage Out.”
Let’s look at same data from the Tuesday April 9, 2024. I’ll use same information about The J. M. Smucker Company (SJM). I don’t wish to pick on The J. M. Smucker Company or recommend it, but one piece of data stood out, and I looked around at other sources to compare.
Let’s look at Dividend Payout Ratio, a common measure. This ratio is the percentage of earnings paid to shareholders via dividends. There are two major ways of calculating the Dividend Payout Ratio. Both end up with the same result.
One: divides the total amount paid in dividends by the total net income for the same period. Second, divide the dividends per share by the earnings per share. The result is expressed as a percentage.
An example is if a company paid out one dollar in dividends per share, and earned four dollars per share for the same period, then the payout ratio is 25%.
What we find is divergent data for the item.
Picking accurate data sources is a tough job sometimes.
What’s your take on inconsistent data? Let me know here.
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