Dividend Yield

Definition

The dividend yield is a ratio that shows the percentage of a company's annual dividend compared to its current share price.

How is dividend yield calculated?

Dividend Yield = Annual Dividend/Share Price

Let's say that Company A pay's a $3 annual dividend to its shareholders and their current share price is at $40.

$3/$40 = 7.5% dividend yield.

Why is it important?

The dividend yield can help investors understand potentially how much they could earn from dividends for each share that they own.

Financial Glossary Reference

logo-white
Help CenterCOVID-19 TrackerChrome ExtensionChart BuilderFeaturesBlogStock Rating SystemResearch DisclosurePrivacy PolicyFinancial GlossaryTerms of UseDisclaimersCookie Policy

Made in Chicago, IL.

© EEON, Inc. - All Rights Reserved.