Financial ratio P/E and Dividend Yield

 How you choose your stocks to trade.

Are you looking at different ratios?

Normally companies with high P/E ratios tend to have

low dividend yields and vice versa.

But I am looking at the data for the following assets and this rule does not apply. ( Data as of today from eToro). So, what is the conclusion?

Obviously, there are many other ratios to look at, but for this post, we just want to decide based on this ratio.

#AAPL  P/E ratio 29.28 Dividend yield 0.66%

#MSFT  P/E ratio 35.37 Dividend yield 0.85%

Should we say that at this stage AAPL is undervalued or MSFT's price is more than it should be? The answer could be this but the other answer is there is no obvious relationship between P/E and Dividend Yield.

At the end of the day, the board of directors can decide what should be the amount of dividend they want to pay.

This makes the decision hard and then we decide to use few ratios instead of only one.