Dividend yield: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Current yield page.) |
imported>Doug Williamson (Layout.) |
||
| Line 23: | Line 23: | ||
= 2% | = 2% | ||
Revision as of 10:51, 7 January 2018
(DY).
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 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.)
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%
