Terms Beginning With 'a'

Annual Yield or Dividend

  • January 11, 2020
  • Team Kalkine

  • Annual Yield or Dividend is the return from an investment. It is calculated as the ratio of the dividend per share and the current stock prices and multiplying it by 100.

 

Dividend yield of a company is compared with its peers and the average of the specific industry. For example, a company trading at $10 a share declares a dividend of $1 per share. The Annual or Dividend yield would be $1/$10*100 = 10%. Investors prefer stocks with a high annual yield to ensure maximum return on the investment.

 

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