Terms Beginning With 'd'

Dividend Yield

  • January 11, 2020
  • Team Kalkine

The ratio of a firm’s annual dividend to its share price gives the dividend yield. It measures the amount of total cash dividends distributed to shareholders in comparison to the market value per share. If the dividend yield of a company is higher, it means that the firm has paid a significant share of its profits by the way of dividends.

Dividend Yield = Dividend Per Share/Price Per Share

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