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
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