Dividend Yield
Dividend
yield can be calculated by following formula
Dividend
Yield = Dividend per Share/Market Price
Example of Dividend Yield
|
Dividend Per Share
|
$ 4
|
|
Market Price
|
$ 20
|
Calculate
the Dividend Yield?
Solution
|
Dividend Per Share
|
$ 4
|
|
Market Price
|
$ 20
|
|
Dividend Yield = ($ 4/ $ 20) x 100
|
20%
|
There is similarity in dividend yield and earning yield formula.
in dividend yield dividend is divided by market value where in earning Yield
EPS is divided by Market value of share.
