Dividend Yield (Stock)
`"Dividend Yield" = "Dividends" / "Price" `
Tags | |
UUID | 2d5d0fdc-0c03-11e4-b7aa-bc764e2038f2 |
The dividend yield is used to calculate the percentage return on investment in a stock. The total return on a stock is the combination of dividends and appreciation of a stock.
Where:
- D = Dividends for the period
- P = Initial Price for the period
EXAMPLE
Two companies are both paying an annual dividends of $3 per share. Company A's stock is trading at $12 while company B's stock is trading at $24. Therefore the dividend yield of A is 25% while the dividend yield of B is only 12.5%. Suppose that all other factors are the same, investors looking to supplement their income would likely prefer A's stock over that of B.
This equation, Dividend Yield (Stock), is used in 2 pages
Calculators
- Comments
- Attachments
- Stats
No comments |
This site uses cookies to give you the best, most relevant experience. By continuing to browse the site you are agreeing to our use of cookies.