The dividend yield or dividend-price ratio of a stock is the dividend per stock, divided by the price per stock. It is also a company's total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.
Whats a good dividend yield?
On average, companies that are in this sector have a dividend yield of 3.2%, while technology companies in the S&P 500 have an average dividend yield of just 1.5%.
How do you calculate dividend yield?
Dividend yield equals the annual dividend per share divided by the stock's price per share. For example, if a company's annual dividend is Rs. 15 and the stock trades at Rs. 1000, the dividend yield is 1.5% (15 ÷ 1000).
