Dividend yield: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Current yield page.) |
imported>Doug Williamson (Add link.) |
||
| (5 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''Financial ratio analysis - investors' ratios.'' | |||
(DY). | (DY). | ||
Dividend | Dividend yield measures the income return enjoyed by shareholders on the current market value of their investments. | ||
(The other component of shareholders' total returns being the expected capital growth in the value of their shareholdings.) | |||
It is calculated as: | |||
Dividend | ''Dividend per share '''÷''' Current share price.'' | ||
Dividend yield can also be calculated as: | |||
''Total dividends '''÷''' Total current market value of equity'' | |||
giving an identical result. | |||
<span style="color:#4B0082">''' | <span style="color:#4B0082">'''Dividend per share example'''</span> | ||
GeeCo's share price is 200p. | GeeCo's share price is 200p. | ||
| Line 22: | Line 30: | ||
4 / 200 | 4 / 200 | ||
= 2% | = '''2%''' | ||
| Line 30: | Line 36: | ||
* [[Current yield]] | * [[Current yield]] | ||
* [[Dividend cover]] | * [[Dividend cover]] | ||
* [[Earnings per share]] | |||
* [[Earnings yield]] | * [[Earnings yield]] | ||
* [[Historic]] | * [[Historic]] | ||
* [[Price to earnings ratio]] | |||
* [[Prospective]] | * [[Prospective]] | ||
* [[Ratio analysis]] | |||
* [[Total shareholder return]] | |||
* [[Yield]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Latest revision as of 18:17, 5 January 2022
Financial ratio analysis - investors' ratios.
(DY).
Dividend yield measures the income return enjoyed by shareholders on the current market value of their investments.
(The other component of shareholders' total returns being the expected capital growth in the value of their shareholdings.)
It is calculated as:
Dividend per share ÷ Current share price.
Dividend yield can also be calculated as:
Total dividends ÷ Total current market value of equity
giving an identical result.
Dividend per share example
GeeCo's share price is 200p.
Its relevant dividends per share for the dividend yield calculation are 4p.
The dividend yield on this basis is:
4 / 200
= 2%
