What Is a Dividend Yield?
FINRA describes it this way, usually shown as a percentage.
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1.How is a dividend yield calculated?
FINRA describes it this way, usually shown as a percentage.
2.A share pays 2 a year at a price of 50. What is the yield?
Two divided by 50 is 4 percent.
3.The dividend stays at 2 but the price falls to 40. What is the yield?
Same dividend, smaller price, bigger percentage.
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Sources (4)
- FINRA: Evaluating Performance (Investor Education, finra.org)
- Fidelity Learning Center: Dividend yield: What it is and how to calculate it
- Payout ratio = Dividends / Net Income (LibreTexts Principles of Financial Management, 10.5; SEC-Filing Federal Home Loan Bank of Seattle 10-Q 2014 als Beispiel einer Firmendefinition)
- Eigene Rechnung: Wohnung, Aktie A (Dividende 2, Kurs 50/40/80), Leo
Education only. Not financial advice.