dividend yield

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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 ?
Consider our five- variable system that includes log price-dividend ratio, real dividend growth, short-and long-term nominal interest rates, and inflation.
The price-dividend ratio is the S&P 500 composite stock price index for the last month of each quarter divided by nominal dividend flow for the S&P 500 composite index over the previous year.
Figures 3-5 display the actual (demeaned) log price-dividend ratio and the implied contribution of expectations of future real dividend growth, future excess returns, and future real interest rates.
It is, in fact, the log price-dividend ratio that contains most of the information about long-run real dividends or excess returns.
Thus, a permanent change in market fundamentals that is barely reflected in their current value may nonetheless have an important effect on the price-dividend ratio.
The covariances and correlations between price-dividend ratios ([P.
By selecting this vector for the vector autoregressive model, we have chosen as an information set the price-dividend ratios and the variables G, which are the one-period growth rates of dividends minus the one-period interest rates.
We are unable to reject the hypothesis that the covariance and correlation between the US and UK log price-dividend ratios is in accordance with the present value model.
FI] denotes the constant pricing kernel or, equivalently, the price-dividend ratio.
The variation in the price-dividend ratio derives from changes in the memory-based conditional expectation, [[?
To the contrary, (13) shows that the excess stock volatility puzzle disappears when the price-dividend ratio, [PSI], that maps dividends into equilibrium stock prices is time-varying, as a result of limited recall capabilities.
26) The approximation is justified by realistic values of the price-dividend ratio in excess of 20 to 30.