For every share of a dividend stock that you own, you are paid a portion of the company’s earnings.
Annual Dividend : for example 20 cent per share; so once a year you will receive a check for 20 cents per share.
Quarterly Dividend – ¼ of the annal dividend: so 5 cent of the annual is 20 cent a share.
Dividend Yield ratio (dividend price ratio or just dividend yield)
The dividend yield or dividend-price ratio of a share is the dividend per share, divided by the price per share
Indicates the relative value of a dividend payout for a dividend paying stock based off of the stock’s market value.
Investors looking for stock with greatest dividend return relative to share cost will compare dividend ratio: the higher the better,
Annual Total Dividend Per share/cost per share X 100