Dividend Yield Analysis
Dividend Yield Analysis

See Also:
Dividends
Dividend Payout Ratio
Financial Ratios

Dividend Yield Analysis Definition

Dividend yield analysis indicates how much dividend a company paid to its investors relative to its stock price.

Formula

Dividend Yield ratio = Annual dividends per share ÷ Price per share

Calculation

For example a company pays annual dividend of $1 per share and its stock price is $20.

Dividend yield = 1 / 20 = 5%

In conclusion, investors can get $0.05 dividend for every dollar invested.

Applications

Dividend yield measures what percentage return a company pays out to its shareholders. In general, well-established companies may have higher dividend yield, while growing companies may have lower ones. For investors, a company with a high dividend yield may be a good investment if the rest of their fundamentals fall into line also.

Resources

For statistical information about industry financial ratios, please click the following website: www.bizstats.com and www.valueline.com.
Learn how you can be the best wingman with our free How to be a Wingman guide!
dividend yield analysis
[box]Strategic CFO Lab Member Extra
Access your Projections Execution Plan in SCFO Lab. The step-by-step plan to get ahead of your cash flow.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]
dividend yield analysis

ARTICLES YOU MIGHT LIKE

The Struggles of Private Company Accounting

Hiring the right accountant  When I meet a business owner operating at a successful $10 million in revenue, they often mention, “My CPA”… I immediately know that CEO/Entrepreneur is referring to their Tax CPA.  That is because one thing that all Entrepreneurs have in common is that they must file a tax return.  So, from

Read More »

Financial Ratios

See also:Quick Ratio AnalysisPrice to Book Value AnalysisPrice Earnings Growth Ratio AnalysisTime Interest Earned Ratio Analysis Use of Financial Ratios Financial Ratios are used to measure financial performance against standards. Analysts compare financial ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). The most useful comparison when

Read More »

CPA’s are Specialized

The Difference in CPAs Looking back at my career I don’t know how many times I have introduced myself to someone and they ask, “Are you a CPA?” and I say yes. Then they tell me “you must be very busy with tax season” and I look at them with a bit of awe and

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

THE ART OF THE CFO®

Financial Leadership Workshop

Days
Hours
Min

September 12-15th 2022

Days
Hours
Min
SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES

Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®

Days
Hours
Min

February 27 - March 2, 2023

Skip to content