Dividend Yield

英文名称:Dividend Yield 

measures the last recorded Cash Dividend (annualized) as a % of the current market price of the stock

Dividend Yield =Cash Dividend per Share/ Current Market Price per Share

中文名称:股息收益

指反映股票股息收益水平的指标,计算方法为该公司的年度股息除以总市值,或每股股息除以每股市值,通常以百分比的形式表示。 eb

A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable dividend yields.

To better explain the concept, refer to this dividend yield example: If two companies both pay annual dividends of $1 per share, but ABC company's stock is trading at $20 while XYZ company's stock is trading at $40, then ABC has a dividend yield of 5% while XYZ is only yielding 2.5%. Thus, assuming all other factors are equivalent, an investor looking to supplement his or her income would likely prefer ABC's stock over that of XYZ.