Dividend Yield Definition and Explanation

Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

Determines how much value one share of company stock will return.

[sc:kit02 ]

Dividend Yield Formula

Explanation of Dividend Yield

The Dividend Yield compares Cash 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 stock price more so than the Cash Dividends Per Share figure, but both values should be watched.