Dividend Yield Analysis - The Strategic CFO®

Dividend Yield Analysis

Other Category: Accounting, Investment & Shareholders, Management/Ownership

July 23, 2013
Dan
analysis, dividend yield analysis, dividends, investors, shareholders

Dividend Yield Analysis Definition

Dividend yield analysis indicates how much dividend a company paid to its investors relative to its stock price.

Formula

Dividend Yield ratio = Annual dividends per share ÷ Price per share

Calculation

For example a company pays annual dividend of $1 per share and its stock price is $20.

Dividend yield = 1 / 20 = 5%

In conclusion, investors can get $0.05 dividend for every dollar invested.

Applications

Dividend yield measures what percentage return a company pays out to its shareholders. In general, well-established companies may have higher dividend yield, while growing companies may have lower ones. For investors, a company with a high dividend yield may be a good investment if the rest of their fundamentals fall into line also.

Resources

For statistical information about industry financial ratios, please click the following website: www.bizstats.com and www.valueline.com.
Learn how you can be the best wingman with our free How to be a Wingman guide!

[box]Strategic CFO Lab Member Extra
Access your Projections Execution Plan in SCFO Lab. The step-by-step plan to get ahead of your cash flow.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]

ARTICLES YOU MIGHT LIKE

Is Mexico the New China?

June 1, 2023

In the wake of the COVID-19 pandemic and escalating tensions with China, American companies are actively seeking alternatives to mitigate their supply chain risks and reduce dependence on Chinese manufacturing. Nearshoring, the process of relocating operations closer to home, has emerged as an explosive opportunity for American and Mexican companies to collaborate like never before.

The Accounting Gap Between Large and Small Companies

March 8, 2023

The Accounting Gap: It’s unfortunate, but true. A large gap exists between the accounting departments of large or publicly traded companies and smaller or private companies. In our past 25 years of consulting we’ve noticed that more often than not, these smaller/private companies will fill the gap with Bookkeepers, rather than the degreed Accountants/CPAs they

The Struggles of Private Company Accounting

June 9, 2022

Building your Accounting Department… When I meet a business owner operating at a successful $10+ mil in revenue I often hear them say “My CPA…” and I immediately know they are referring to a tax CPA. One thing ALL entrepreneurs have in common is that they have to file a tax return. So from day

MARCH 28TH-31ST 2022

Days

Hours

Min

August 7-10th, 2023

Days

Hours

Min

SHARE THIS ARTICLE