2006-11-15 12:11:10 · 2 answers · asked by ruffrider 1 in Business & Finance ➔ Investing
Dividend is reported in % say 50% dividend. It is declared on the face value of the stock. If face value of the stock is $10 then 50% dividend means that the investors get $5 per share from the company.
Dividend yield = 100*(Dividend/Market price)
If current market price of a share is $50 and dividend is $5 per share then dividend yield is 10%. Dividend yield depends on daily market price and fluctuates with price.
2006-11-16 06:42:05 · answer #1 · answered by StraightDrive 6 · 1⤊ 0⤋
Dividend is the actual amount of money paid from profit by the company. Yield is the percentage that the dividend is relative to the share price.
It is more complicated than that, but this is near enough. Can I also suggest that if you do not understand this you should not yet be trading?
2006-11-15 12:14:29 · answer #2 · answered by iansand 7 · 2⤊ 0⤋