Yield

Dividend Yield

Annual dividends per share as a percentage of stock price.

Definition

Dividend yield expresses the annual cash dividend as a percentage of the current share price. A 4% yield means $4 of dividends per $100 invested.

Formula

(Dividends Per Share ÷ Stock Price) × 100

Why it matters

Dividend yield matters most for income-focused investors and as one component of total shareholder return. Very high yields (>8%) often signal market distress — the price has fallen anticipating a dividend cut. Always check the payout ratio alongside.

How Standard Equity uses it

We compute and display the average dividend yield using the average stock price for the year, not the year-end snapshot — a more representative number.

The metric

CategoryYield
Unit%
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