Dividend yield

Also called: yield, income

The yearly dividend as a percentage of the share price: the income return if you bought today.

Formula

Dividend yield = Annual dividend per share ÷ Share price

Worked example

1. Annual dividend per share = $1.20
2. Share price = $80.00
3. $1.20 ÷ $80.00

Result: 1.50%

How to read it

A very high yield can be a warning that the market expects a cut. Check the payout ratio.

Worked example uses made-up figures for 'Example plc'

See it with real numbers: Any company page → (free account)