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.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| DPS | Dividend per share | currency | Annual dividend for one share. |
| P | Share price | currency | The price paid for the share. |
| y | Yield | percent | The income return as a share of the price. |
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.