Dividend yield
Dividend yield is either the end-of-period dividend divided by the beginning-of-period price or as the ratio of the current dividend to the current price. Valuation formulas use the former definition.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Dividend yield. Defined as either the end-of-period dividend divided by the beginning-of-period price or as the ratio of the current dividend to the current price. Valuation formulas use the former definition.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Dividend yield. The expected dividend divided by the current price of a share of stock.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Dividend yield. Ratio of dividends per share of stock to the stock's market price per share. It tells the percentage of a stock's market value that the company returns to stockholders annually as dividends.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
