Dividend yield is a financial ratio that measures the amount of cash dividends paid out by a company in relation to its share price. It is expressed as a percentage and can be used to evaluate the income potential of a particular stock investment.
Here are the steps to calculate dividend yield:
In summary, the formula to calculate dividend yield is:
Dividend Yield = Annual Dividend per Share / Current Share Price x 100%
Note that the dividend yield can vary over time based on changes in the company’s dividend payments and stock price. It is important to keep track of both of these factors when evaluating a stock for its income potential.
The information provided in this article is for informational purposes only and should not be construed as financial, investment, or professional advice. The views expressed are those of the author and do not necessarily reflect the opinions or recommendations of any organizations or individuals mentioned. Always consult with a qualified financial advisor or other professionals before making any financial decisions. The author and publisher are not responsible for any actions taken based on the content provided.
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