Dividend Yield Formula
Dividend yield measures the annual dividend income relative to the stock price, helping you assess the income potential of dividend-paying investments.
Dividend Yield Formula
Dividend Yield = (Annual Dividend per Share / Price per Share) × 100
Where:
- D = Annual dividend per share
- P = Current price per share
Step-by-Step:
- 1
Find annual dividend
Sum of all dividends declared in the past year per share.
- 2
Find current price
Current market price of the stock.
- 3
Calculate yield
(Dividend / Price) × 100.
Worked Examples:
ITC dividend
Dividend: ₹15.50/sharePrice: ₹450
Result: 3.44%
(15.50 / 450) × 100 = 3.44% dividend yield