Dividend Yield

The annual dividend income per share received from a company, divided by its current share price. Put simply – how much income is a shareholder getting out of the company for the capital locked up in it? Dividend yields are calculated on the net dividend paid over the course of a year divided by the stock's price. For example, if a company declares a net dividend of 2.1p per share and has a share price of 150p, the dividend yield is 2.1/150 = 1.4%. Note that the higher the share price, the lower the dividend yield.