Dividends and Dividend Yield Ratios/Dividend Yield

Dividends

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

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