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Dividends per Share
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| Dividend Yield =
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Market Price of Common Stock
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Explanation of Dividend Yield:
The Dividend Yield compares 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 tock price more so than the Dividends Per Share figure, but
both values should be watched.
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