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:
“Quarrel not at all. No man resolved to make the most of himself, can spare time for personal contention. Still less can he afford to take all the consequences, including the vitiating of his temper, and the loss of self-control. Yield larger things to which you can show no more than equal right; and yield lesser ones, though clearly your own. Better give your path to a dog, than be bitten by him in contesting for the right. Even killing the dog would not cure the bite.”
—Abraham Lincoln (1809–1865)