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Valuation & multiples

Dividend Yield

The annual dividend paid per share as a percentage of the current share price.

Part of the Valuation 101 course · Lesson 14 of 14
Formula
Annual Dividend Per Share / Share Price × 100

What it is

Dividend yield expresses a company's yearly cash dividend as a percentage of its stock price. It tells you the income return you receive from dividends alone, before any change in the share price. A stock priced at $100 paying $4 a year yields 4%.

Why it matters

It is a core figure for income-focused investors comparing the cash return of different stocks and against bonds. Pitfalls: a very high yield can signal a falling share price and a dividend at risk of being cut, the yield rises automatically when the price drops, and a high payout is only as safe as the company's cash flow supports.

How it's calculated

Divide the total annual dividend per share by the current share price, then multiply by 100 to get a percentage.

How Quintarthai uses it

Dividend yield appears in the Summary Key-metrics grid on a stock's company page and is a filterable field in the Stock Screener for income screens.

Cross-border note. US investors holding Canadian dividend stocks generally face a 15% Canadian withholding tax on dividends (often reduced or recoverable in retirement accounts under the Canada-US tax treaty), so the after-tax yield can differ from the headline figure.

FAQ

Is a higher dividend yield always better?
No; an unusually high yield often reflects a depressed share price and can warn of a dividend cut, so the sustainability of the payout matters more than the headline number.
Does dividend yield change with the stock price?
Yes; because price is in the denominator, the yield rises when the price falls and falls when the price rises, even if the dividend itself is unchanged.
Related terms
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