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how to calculate the dividend yield. To calculate dividend yield all you have to do is divide the annual dividends paid per share by the price per share. Dividend yield is a calculation of the amount in dollars of a companys current annual dividend per share divided by its current stock price.
Lets say that the annual dividend per share for Company A is 6 and its current share price is 270. Dividend yield equals the annual dividend per share divided by the stocks price per share. The answer is 004 or 4.
Because dividends are paid quarterly many investors will take the last quarterly dividend multiply it by four and use the product as the annual dividend for the yield calculation.
It is calculated by dividing the annual dividend per share by market value per share. However the dividend yield formula typically requires you to divide a companys annual dividends by its current stock price. When we plug these numbers into the formula it looks like this. When this article originally went to digital press shares of the Big Mac empire closed at 9407.