dividend yield


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Related to dividend yield: Dividend payout ratio, Capital gains yield

Dividend yield (Funds)

Indicated yield represents return on a share of a mutual fund held over the past 12 months. Assumes fund was purchased a year ago. Reflects effect of sales charges (at current rates), but not redemption charges.

Dividend yield (Stocks)

Indicated yield represents annual dividends divided by current stock price.

Dividend Yield

The dividend per share that a company pays divided by the share price. This is reported on the financial statements of a publicly-traded company. It is a measure of the return an investor makes for every dollar invested in the company. If there are no capital gains, the dividend yield is the entire return on the stock. It is also called the price-dividend ratio.

dividend yield

The annual dividends from a common or preferred stock divided by that stock's market price per share. If ExxonMobil common stock trades at a price of $50 per share, its $.92 dividend provides a dividend yield of $.92/$50 , or 1.84%. This figure measures the current return on a particular common stock but does not take into account potential gains and losses in the security's value.
Case Study While dividend yield can be an important measure of the current income you are likely to receive from ownership of a particular common stock, it can also signal other possibilities, some of which aren't so good. For example, a very high dividend yield is almost certainly a sign that the dividend being paid is likely to be reduced or even eliminated. In the summer of 1996, Northeast Utilities was facing rising expenses as a result of shutting a nuclear power plant located in Connecticut. The firm's stock price, reflecting investor concern about the escalating costs, had declined 50% since the beginning of the year. The reduced stock price of $12 7/8 produced a dividend yield of 13.7% based on the utility's quarterly dividend of 44¢ per share. The high dividend yield stemmed from investors' expectations that the dividend would have to be reduced, perhaps substantially, because of lower earnings and cash flow related to the troubled nuclear plant. A common stock that has a dividend yield higher than the yield on long-term bonds indicates a need for caution.

Dividend yield.

If you own dividend-paying stocks, you figure the current dividend yield on your investment by dividing the dividend being paid on each share by the share's current market price.

For example, if a stock whose market price is $35 pays a dividend of 75 cents per share, the dividend yield is 2.14% ($0.75 ÷ $35 = .0214, or 2.14%).

Yields for all dividend-paying stocks are reported regularly in newspaper stock tables and on financial websites.

Dividend yield increases as the price per share drops and drops as the share price increases. But it does not tell you what you're earning based on your original investment or the income you can expect to earn in the future. However, some investors seeking current income or following a particular investment strategy look for high-yielding stocks.

dividend yield

the DIVIDEND paid by a JOINT-STOCK COMPANY for a given ACCOUNTING PERIOD expressed as a percentage of the current market price per share. For example, if Company X declared a dividend of £1 per ORDINARY SHARE for the 12 month accounting period ending 31 December, and the current market price of one ordinary share in Company X was £5, the dividend yield would be:

dividend yield

the DIVIDEND paid by a JOINT-STOCK COMPANY for a given accounting period (usually one year) as a proportion of the current market price of its share. For example, if Company X declared a dividend of 50p per ORDINARY SHARE for the twelve-month accounting period ended 31 December, and the current market price of one ordinary share in Company X was £10 the divided yield would be:

References in periodicals archive ?
'Historically, utility sector IPOs saw strong listing gains at the MSM and had adjusted for 6-6.5 per cent dividend yield immediately post listing.
A positive result was identified between dividend payout and dividend yield whereas, a negative result was identified between dividend payout and stock prices in their study.
Table 2 is the correlation analysis, the result shows that Both dividend yield and payout ratio are negatively impact on stock price volatility.
The dividend yield ratio is given by the ratio of dividend per share to the price per share, which can be written using the following formula (Gabrusewicz, 2014, p.
At its prevailing price then of P116.20 apiece, SCC had a dividend yield of 3.10 percent and a payout ratio of 52 percent.
In comparison, the dividend yield of the S&P 500 was 2.10%, and the S&P Composite 1500 yielded 2.04%.
Globe Chief Finance Officer Albert de Larrazabal said the company's yield of 4.4% continues to be competitive as the average dividend yield of firms included in the Philippine Stock Exchange index is only about 2%.
Mobily 2014E DPS stands at SR5 representing a divided yield of 5.5 per cent and a payout ratio at 59 per cent while STC's dividend yield and pay-out ratio are 4.1 per cent and 52 per cent respectively.
Daman Fifth Fund also paid out a dividend of AED 1 for the 1st quarter of 2013 which equates to an annualized dividend yield of 3.78%.
The record date for the dividend is set on 19 April, and it is payable on 30 April.Our View: Even though the special dividend implies a healthy dividend yield of 6.1%, the news was expected.
We see the stock as attractive at current mid-market price levels due to low multiples and attractive dividend yield.
It is best to bet on dividend yield stocks given the high volatility in the market as they perform well in most adverse conditions.