home    Glossary    Dividend Yield

Dividend Yield

Definition of Dividend Yield

A dividend yield is a ratio of dividends paid per share by the latest share price, expressed as a percentage. It is used to understand how much dividends a company pays per share outstanding. The formula to calculate dividend yields is:

Dividend Yield: Dividend Per Share / Current Shar Price

A high dividend yield indicates a company’s willingness to redistribute more profits to shareholders, while a low dividend yield signals the opposite.




 Back to glossary

Related Terms


Download Dhan App

Trade and Invest in Stock Markets

Get started on Dhan, it takes
less than 10 minutes!