How To Calculate Dividend Yield - ADVFN Education
ADVFN Logo ADVFN

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

How To Calculate Dividend Yield

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:

  1. Determine the annual dividend per share: To calculate the annual dividend per share, you can look at the company’s most recent dividend payment and multiply it by the number of times the company pays dividends in a year. For example, if a company pays a quarterly dividend of $0.50 per share, the annual dividend per share would be $2.00 (0.50 x 4).
  2. Find the current share price: You can find the current share price of a stock by checking financial websites, such as Yahoo Finance or Google Finance.
  3. Divide the annual dividend per share by the current share price: Divide the annual dividend per share by the current share price to get the dividend yield percentage. For example, if the annual dividend per share is $2.00 and the current share price is $50.00, the dividend yield would be 4% (2.00 ÷ 50.00 x 100%).

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.

Disclosure: 80% of retail CFD accounts lose money. Plus500 does not offer spread betting, social trading, or bonds. Furthermore, hedging is strictly prohibited on the Plus500 CFD platform.

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.

Best Share Dealing Brokers

  • Low trading fees and high interest on cash balances
  • Wide range of products
  • Many great research tools

Investing in financial products involves risk. Losses may exceed the value of your original investment.

  • Free and unlimited demo account
  • +Insights - Empower strategy by analysing millions of Plus500 costumers' activity in real-time.
  • One of the best CFD brokers

80% of retail CFD accounts lose money.

Min Deposit:$100
  • We're regulated in 7 jurisdictions including with the FCA in the UK
  • Access razor sharp spreads from 0.0 pips* and top tier liquidity
  • 99.99% fill rate*, fast execution and no dealing desk intervention
  • Choose from 4 world-leading platforms, including MT4/5 & TradingView

75.1% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Min Deposit:No Minimum Deposit
  • Established in 1999, and launched in the UK in 2017.
  • Fineco Bank is one of Europe’s leading FinTech banks.
  • Trade without compromise on a premium platform without premium prices.
  • Open account and get 100 welcome free trades.

All trading involved risks. Losses can exceed deposits. Terms and condition apply.

  • Over 4,700 instruments to trade
  • Social features, including copy trading
  • Smart Portfolios (ready-made thematic portfolios)
  • Free $100,000 demo account

76% of retail investor accounts lose money when trading CFDs with this provider.

Min Deposit:$100
Mobile App: Yes
Stocks
How To Calculate Dividend Yield
Categories: