Dividend Yield

Dividend payments are extremely important to some shareholders and of secondary consideration for others.  While some investors seek out a regular stream of income from a stock, others invest in the hope of securing capital gains through rising stock prices.

In order to quickly compare the merits of alternative investment opportunities, the Dividend Yield (%) can be calculated as follows:

Stock Price or Market Price per Share / Dividends per Share x 100

Dividend yield is very important to investors whose primary objective is to maximize the dividend revenues from their investments.