Dividend Yield is an index designed to measure the return on dividends from a company in relation to its stock price. This index has the benefit of being able to compare the profitability of dividends between companies.
This is the amount that received the shareholder. Dividends are the portion of the benefits that are delivered to the shareholder and are, in most cases, the only regular flow they receive. The yield dividends ("dividend yield") is the ratio between the dividend (the historical or expected for next year) and the stock price today:
For example, imagine a company which paid an annual dividend of $1 per share and whose shares are currently sold for $20. Its dividend yield would be:
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