Dividend Yield Calculator

How to Use the Dividend Yield Calculator

1. Enter the dividend per share in the first input field. This is the total dividends paid per share of stock.
2. Enter the market price per share in the second input field. This is the current market price of one share of stock.
3. Click the "Calculate" button to compute the dividend yield.
4. The result will be displayed as a percentage in the result area.

Understanding Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is a measure of the cash return an investor receives for holding a security, relative to the market value of that security. A higher dividend yield can be attractive to income-focused investors, but it's important to consider the company's overall financial health and growth prospects.

Example

If a company pays a dividend of $2 per share and the current market price of the stock is $50 per share, the dividend yield would be calculated as follows:

Dividend Yield = ($2 / $50) * 100% = 4%

This means that an investor holding the stock would receive a 4% return on their investment in the form of dividends.