A ratio of a company's annual cash dividends divided by its current stock price expressed in the form of a percentage. To get the expected annual cash dividend payment, take the next expected quarterly dividend payment and multiply that by four. For instance, if a $10 stock is expected to pay a 25 cent quarterly dividend next quarter, you just multiple 25 cents by 4 to get $1 and then divide this by $10 to get a dividend yield of 10%.
Dividend Yield = Annual Dividend / Price = $0.25 * 4 / 10 = 0.10 = 10%
Many newspapers and online quote services will include dividend yield as one of the variables. If you are uncertain whether the current quoted dividend yield reflects a recent increase in the dividend a company may have made, you can call the company and ask them what the dividend per share they expect to pay next quarter will be.
Source: Google search (source wasn't recorded at time of reading)
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