Dividend Yield

Quick Definition

Determines how much value one share of company stock will return.

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Dividend Yield Formula

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Calculate Dividend Yield with our online Dividend Yield Calculator.

Explanation of Dividend Yield

The Dividend Yield compares Cash Dividends Per Share to the Market Price of Common Stock, and measures how much of a return one share of stock will bring.

Importance of Dividend Yield

Not all companies pay out dividends, but this ratio can be used for those that do. Large and established companies will often be the ones giving out dividends. The Dividend Yield will change more often due to fluctuations in stock price more so than the Cash Dividends Per Share figure, but both values should be watched.

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