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Dividend Yield Calculator

LAST UPDATE: September 24th, 2020

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Definition – What is Dividend Yield?

Dividend Yield is the percentage of dividends per share in relation to the share price.

A dividend yield of ‘0%’ means that no dividends are paid.

A dividend yield of ‘100%’ means that 100% of the earnings of the corporation are paid in dividends.

A dividend yield of ‘7%’ means that 7% of the earnings of the corporation are paid as dividends.

Formula – How to calculate Dividend Yield

Dividend Yield = (Annual Dividends per Share / Share Price) x 100%

Example

A company’s share price is $35 and pays annual dividends per share of $1.50.

Dividend Yield = ($1.50 / $35) x 100% = 0.04286 x 100% = 4.29%

Therefore, the dividend yield of this company’s stock is 4.29%.

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