How do you calculate dividend yield?

Let’s say a public company’s share price is $50, and it pays annual dividends equal to $1.50 per share. To determine the dividend yield, divide the dividend amount per share by the price per share: $1.50 / $50 = 0.03. Convert the decimal to a percentage, and you get a dividend yield of 3%.

What is a dividend yield?

The dividend yield is the amount of money a company pays shareholders for owning a share of its stock divided by its current stock price. Mature companies are the most likely to pay dividends. Companies in the utility and consumer staple industries often have relatively higher dividend yields.

How much is a monthly dividend compared to an annualized dividend?

A monthly dividend of $0.255 times 12 equals an annualized dividend of $3.07 (rounded). That $3.07 dividend divided by a share price of $60 equals a dividend yield of 5%. If you're calculating a stock's yield, be careful. Don't just assume that the next dividend payment will be equal to the last.