Dividend yield

What is Dividend yield?

The dividend yield is the ratio of a company’s dividend paid (or projected) compared to its share price. This applies to both stocks and ETFs.

It is worth noting that the dividend yield is commonly calculated on the basis of ordinary shares and dividends. For example, it excludes the payment of special dividends.

How is Dividend yield calculated?

Dividend yield (FY) % = Dividends per share excluding special dividends for the financial year / close price on the end of the specified period * 100

Dividend yield (FQ) % = Dividends per share excluding special dividends for the last twelve months prior to the end of the quarter / close price on the end of the specified period * 100

Dividend yield (TTM) % = Dividends per share excluding special dividends for the last twelve months/close * 100

Dividend yield (calculated by TradingView) % = All dividends per share for the last twelve months / close * 100

Dividend yield (indicated) % = Indicated annual dividend / close * 100

Where Indicated annual dividend refers to dividends expected to be paid in the next twelve months for non-U.S./Canadian companies or the dividends paid in the last twelve months.

What does Dividend yield mean?

Dividend yield shows the percentage of investor income from dividends relative to the share (or ETF) price. It is worth noting that the dividend yield will increase sharply with a sharp drop in the price. A high dividend yield is only sometimes a good thing. Instead, it is simply a way of seeing how much yield an investor can receive for owning a particular company (or ETF).