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Dividend Yield
The dividend yield is a ratio of the company's current annual dividend to its current share price. It measures the rate of return an investor will earn with the dividends.
About the Ratio
- Low ratio indicates that profits are primarily reinvested for growth
- Newer companies
- Companies expected accelerated growth
- High ratio indicates that profits are being given to shareholders.
- Established companies
- Companies not expected to grow at an accelerated page
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Example: Dividend Yield
In 2019, Apple Inc. reported EPS of $11.97 and paid $3.08 in dividends. The current market price of the stock is $364.11.
What is the company's dividend yield?
Practice: Dividend Yield
Bank of Wize paid quarterly dividends of $0.77 to shareholders in 2020. The company reported net earnings of $124 million and had an average of 10 million shares outstanding. The shares were issued at an average price of $15 per share and are not trading at 230% of their book value.
What is the company's dividend yield?
Do not round your work, round final answer to 2 decimal places and enter your answer in percentage format. For example, 0.23588 should be entered as 23.59.