# Dividend Yield Calculator

May 28, 2018

Divident Yield Calculator is used to calculate the Dividend Yield Ratio from the last full-year dividend and current share price.

Dividend Yield Ratio:
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What is dividend yield?
The dividend yield is a way to measure how much money flow you are getting for each of your buck invested in an equity position.
Importance of debt ratio
The dividend yield ratio indicates the amount a company pays out in dividend each year relative to its share price. Dividend yield tells an investor the yield he/she can expect by purchasing a stock. It depends on how much a share price moves during the day, it constantly changes as the price of the share changes.
Formula
Dividend Yield Ratio = Dividend Per Share / Market Value Per Share
Example

Suppose a company declares dividend at $1.70 per share. The face value of a share of the company is$15 and the market price per share is $20. The dividend yield ratio according to the formula will be:- • =$1.70 / \$20
• = 8.5%