Definition
Dividend yield is expressed as a percentage and shows the annual dividend income per share divided by the stock's current price. It's particularly important for income-focused investors who seek regular cash payments from their investments.
Formula
股息收益率 = (每股年度股息 / 股价) × 100%
Example
If a stock pays an annual dividend of $2 per share and is currently trading at $50, the dividend yield is 4% ($2 / $50 × 100%).
FAQ
What is Dividend Yield?
A financial ratio showing how much a company pays in dividends relative to its stock price.
How do you calculate Dividend Yield?
A common formula for Dividend Yield is: 股息收益率 = (每股年度股息 / 股价) × 100%
Why is Dividend Yield important?
Dividend Yield helps investors evaluate income and make more informed decisions.