Finance & Interest
Basic

Dividend Yield

Annual dividend as a percentage of share price.

Formula

Y=DividendPrice×100Y = \frac{\text{Dividend}}{\text{Price}}\times 100

Variables

DividendAnnual dividend
PriceShare price

Example

$2 on $50 = 4%

Did You Know?

A very high dividend yield can be a warning sign, often meaning the share price has crashed.

income