What Is Dividend Yield? (#54)

What Is Dividend Yield?

Dividend Yield is nothing but the percentage of the Share the Company is gonna pay in Dividends!

How Is The The Dividend Yield/Percentage Calculated?

It is calculated by dividing the annual dividend payed per share (last year) by the current share price & than multiply it by 100 to obtain the dividend %.

Formula:-

Lets take an example & try taking out the Dividend Yield by simple calculation.

So lets say that the annual dividend payed per share was 10$ last year.
& the share price currently is 100$.
So now we have two things we needed....

Lets do the calculation, than....

10/100×100 = 10%
Dividend yield = 10%

Its just that simple.... now there may or may not be Companies with a 10% Dividend Yield OR you know like Companies in reality won't have these simple numbers for calculations.... I used simple numbers to make it easy to understand!

Anyways; so that is basically it for today....
I hope you understood what I was explaining!
&

Thanks For Reading!

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