Dividend Yield
Annual dividends per share divided by share price.
What is Dividend Yield?
The income return on a stock at today's price. A rising yield can mean a generous payout or a collapsing price - always check which, and whether the payout is covered by earnings.
Dividend Yield: a worked example
$2 annual dividend on a $50 stock is a 4% yield.
More terms in Valuation & Analysis
Market Capitalization
Share price times shares outstanding - the equity value of a company.
Earnings Per Share (EPS)
Net income attributable to each share of common stock.
Price-to-Earnings (P/E) Ratio
Price per share divided by earnings per share.
Payout Ratio
The share of earnings paid out as dividends.
Book Value
Assets minus liabilities - the accounting value of equity.
Free Cash Flow
Operating cash flow minus capital expenditures.
EBITDA
Earnings before interest, taxes, depreciation, and amortization.
Return on Equity (ROE)
Net income divided by shareholders' equity.