Market-Based Financial Ratio: Dividend Yield
DIVIDEND YIELD:
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FORMULA |
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Dividends per share / Market price per share |
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MEASURE WHAT |
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Share rate of dividend to shareholders based on market price |
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SCORE/VALUE |
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Higher ratio is better. Depends on performance of the company itself & objectives of Management as studies show higher yields can increase share prices |
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SALIENT POINTS TO NOTE |
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It is the cash rate of return by shareholders through dividend |
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