How to calculate dividend yield on common stock?

Question

0

Carmichael 0 Comments

What is the formula that is most widely used to calculate the dividend yield of a common stock for companies? Could you also help me with the interpretation of the result?

2 Answers

score 0 · Answer 1 · 2012-12-02T22:02:29+00:00

The dividend yield gives the dividend that each share received compared to the market value. The ratio can be calculated as follows:

Dividend Yield= Dividend per Share/Market Value of one Share

Or

Dividend Yield=Total Dividends paid/Market Capitalization of the company

score 0 · Answer 2 · 2013-05-06T22:44:22+00:00

The dividend yield is quite easy to be calculated. You can either use the following formula:

Dividend Yield=Dividend Per Share/Price of one Stock