Formula and Calculation of Dividend Yield
The formula of dividend yield is given by:
Dividend Yield = Annual Dividend per share / Current Share Price
To calculate the dividend yield, we divide the annual dividend per share by current share price.
Dividend Per Share (DPS) = Total number of dividends paid / total numbers of shares held
Annual DPS = Sum of all dividends given during the year
How to Calculate Dividend
Dividend per share is calculated using a simple method. To calculate DPS, divide the total number of dividends paid by the company by the total number of shares held. The annual dividend is the total dividends given out during the year.
In this article, we will discuss how to calculate dividends along with the basic information of the dividend. We will also discuss the dividend formula and provide some examples of how to calculate dividends. Let’s start our learning on “How to Calculate Dividend.”
Table of Content
- What is Dividend Ratio?
- What is Dividend Yield?
- Formula and Calculation of Dividend Payout Ratio
- Formula and Calculation of Dividend Yield
- What is Difference Between the Dividend Payout Ratio and Dividend Yield?