User:Vumanh

Dividend yield Ratio

Headline text
definition The dividend yield ratio allows investors to compare the latest dividend they received with the current market value of the share as an indictor of the return they are earning on their shares. Note, though, that the current market share price may bear little resemblance to the price that an investor paid for their shares. Take a look at the history of a business's share price over the last year or two and you will see that today's share price might be a lot higher or a lot lower than it was a year ago, two years ago and so on.

We clearly need the latest share price for this ratio and we can get that from newspapers such as the Financial Times, The Times, The Guardian and the Daily Telegraph. We can also find the share prices on the Internet.

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The formula for the dividend yield is:

Dividend yield =$$Latest annual dividends/Current market share price $$

--Vumanh 00:50, 20 December 2005 (UTC)