Dividend Yield

This criterion rates the quality of an investment by the investor’s income from distributed dividends.
The overall yield of the investment is not taken into consideration, since this criterion ignores the stock price and changes in it throughout the investment period.
The dividend yield is the ratio of the dividend to the current stock price.
For example, if the price of Merck (ticker: MRK) was $33.03 on January 19, 2001, and the most recent distributed dividend was $1.52 per share, the dividend yield for Merck on that date was 4.6%.

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This entry was written by admin, posted on May 1, 2009 at 2:39 pm, filed under Stock Exchange. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.