dividend yield

Funds: indicated yield represents return on a share of a mutual fund held over the past 12 months. Assumes fund was purchased a year ago. Reflects effect of sales charges (at current rates), but not redemption charges. Bloomberg Financial Dictionary
Stocks: indicated yield represents annual dividends divided by current stock price. Bloomberg Financial Dictionary
An accounting ratio, defined as the gross dividend ( dividends) per share divided by the share price. Note that the companies declare dividends on a net basis (net of 20% tax) and therefore the net dividend per share will need to be grossed up by the fraction 100/80. The reason that the calculation is done on a gross basis is to facilitate comparison with the yields available on other investments. Broadly speaking, the lower the dividend yield, the higher the company's share price and the more highly rated the company. Dresdner Kleinwort Wasserstein financial glossary
The dividend yield is the return that you are getting for investing in a company. It is calculated by dividing the dividend by the current share price, expressed as a percentage. The gross dividend yield is used in preference to the net dividend yield, so that investors can make a direct comparison with ( gross) interest yields from loan stocks and gilts.
A stock's market value in relationship to its dividend amount expressed as a percentage. To calculate it, divide the dividend by the stock price. NYSE Euronext Glossary

* * *

dividend yield dividend yield yield1

* * *

   The ratio of annualized dividends to the price of a share. Dividend yields are widely used to measure the income return of a share. High yields may mean high dividends, or they may mean that the price of the share has fallen, making the ratio look impressive despite a poor market rating of the company. Low yields may mean that the company's share price is high in anticipation of rapid growth, or that the company is not distributing much of its earnings in dividends, preferring to keep cash for reinvestment in the business.
   ► See also Dividend.

* * *

dividend yield UK US noun [C]
FINANCE the dividend a company pays out to investors as a percentage of the share price: »

A high-growth company will have a low dividend yield because it reinvests most of its profits.


The dividend yield ratio tells you how much a stock is paying off for the price of the stock.

Financial and business terms. 2012.

Look at other dictionaries:

  • dividend yield — The dividend divided by the current share price, expressed as a percentage. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Dividend yield — The dividend yield or the dividend price ratio on a company stock is the company s total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. It is often expressed as a… …   Wikipedia

  • Dividend Yield — 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 …   Investment dictionary

  • dividend yield — / dɪvɪdend ji:ld/ noun a dividend expressed as a percentage of the current market price of a share …   Dictionary of banking and finance

  • dividend yield — See: dividend …   Accounting dictionary

  • dividend yield — See dividend …   Big dictionary of business and management

  • dividend yield — /ˈdɪvədɛnd jild/ (say divuhdend yeeld) noun Stock Exchange the dividend shown as a percentage of the last sale price …   Australian English dictionary

  • dividend yield —   Rapporto tra il dividendo e il prezzo corrente ed indica il rendimento percentuale dell azione in termini di dividendo (passato o atteso) …   Glossario di economia e finanza

  • dividend yield — Fin dividends expressed as a percentage of a stock’s price …   The ultimate business dictionary

  • dividend yield — …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.