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Investing

Dividend yield

The annual dividend per share divided by the current price gives the income return as a percentage of the purchase price.

The Formula

yield = dividend per share / share price

The annual dividend per share divided by the current price gives the income return as a percentage of the purchase price.

SymbolMeaning
DPSDividend per share
PShare price
yYield

What Each Symbol Means

DPScurrency

Dividend per share

Annual dividend for one share.

Pcurrency

Share price

The price paid for the share.

ypercent

Yield

The income return as a share of the price.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate dividend income page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate Dividend Income, filed under Finance. Every number the guide produces comes from substituting into this one line.