The dividend yield or the dividend-price ratio of a share is the company's total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. It is often expressed as a percentage.
Dividend yield is used to calculate the earning on investment (shares) considering only the returns in the form of total dividends declared by the company during the year.
Its reciprocal is the Price/Dividend ratio.
Read more about Dividend Yield: Preferred Share Dividend Yield, Common Share Dividend Yield, Forward Dividend Yield, Related Measures, Desirability, Related Reference, Dow Industrials, S&P 500
Famous quotes containing the word yield:
“They are not callow like the young of most birds, but more perfectly developed and precocious even than chickens. The remarkably adult yet innocent expression of their open and serene eyes is very memorable. All intelligence seems reflected in them. They suggest not merely the purity of infancy, but a wisdom clarified by experience. Such an eye was not born when the bird was, but is coeval with the sky it reflects. The woods do not yield another such a gem.”
—Henry David Thoreau (1817–1862)