Question: How to Calculate Dividend Yield Per Share?
Answer: To calculate dividend yield per share, use this formula:
Dividend Yield = (Annual Dividend Per Share ÷ Current Stock Price) × 100
For example, if a stock pays $2.40 annually and trades at $60 per share, the yield is 4% ($2.40 ÷ $60 × 100). This percentage shows how much cash flow you earn for each dollar invested. Remember, yield changes if the stock price moves—a falling price boosts yield, while a rising price lowers it. Always check if high yields are sustainable before investing.
Dividend Yield Formula:
Example: Calculating Coca-Cola’s (KO) Dividend Yield
- Annual Dividend: $1.84 per share (paid quarterly at $0.46)
- Current Stock Price: $60
- Calculation:
