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