How to calculate Dividend yield
The Dividend yield formula, with plain worked examples you can check yourself.
Dividend yield = DPS ÷ Price × 100
The result is a percentage (%).
Worked examples
Price = 50 · DPS = 2 · EPS = 4Dividend yield = 4%
Price = 25 · DPS = 1.25 · EPS = 2.5Dividend yield = 5%
Price = 75 · DPS = 3 · EPS = 6Dividend yield = 4%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Investing & Returns.
Related terms
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