What is a Dividend Rate?
The dividend yield (Dividend Yield Ratio) is the ratio of the total dividend amount for a year to the current market price. The annual dividend, expressed as a percentage of the stock's last sale price, is a simplified form of investment yield. The dividend yield is the ratio between the dividend and the stock price. In investment practice, the dividend rate is one of the important yardsticks to measure whether a company has investment value.
Dividend yield
- The dividend yield (Dividend Yield Ratio) is the ratio of the total dividend amount for a year to the current market price. Annual dividend expressed as a percentage of the last sale price of the stock. This indicator is
- Dividend rate is an important reference criterion for selecting income stocks. If the annual dividend rate for many years exceeds the one-year bank deposit rate, this stock can basically be regarded as a income stock. Dividend yield is also one of the reference criteria for selecting other types of stocks. It is not only the level of dividends and dividend payout that determines the level of dividends, but also the stock price. For example, for two stocks, the share price of A is 10 yuan, and the share price of B is 20 yuan. The two companies also pay a dividend of 0.5 yuan per share. The company's 5% dividend rate is obviously more attractive than that of company B's 2.5%.
- In the stock market, a coal stock called "Shenhuo", when the industry was at a low point in 1999 and 2000, still maintained a performance of three or four cents per share, and used most of its profits each year.
- In the formula:
- D-dividends;
- Dividend rate calculation formula, DDividend; PoStock purchase price