Understanding and calculating yields
Definition: Dividend yield is a ratio that shows how much a company pays in dividends each year relative to its share price. Assuming the share price does not change, the dividend yield is the only return on the shareholder’s investment. Dividend yield =
Example: Dividend yield is a way of measuring how much “bang for your buck” you get from your investment through dividends. To better explain the dividend yield, let’s explore an example. If two companies pay the same annual dividend of $1 per share per year, but XYZ company’s stock sells for $20 while ABC company’s stock sells for $40, then XYZ has a dividend yield of 5% while ABC only yields 2.5%. Assuming all other factors are the same, an investor looking to add to his income would probably prefer XYZ’s stock to ABC’s stock.
About the Vikingen
With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
