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Wednesday, August 17, 2011

How to Calculate Dividend Yield

Dividend Yield (or the dividend-price ratio) indicates what percentage return a company pays out in the form of dividends. The higher the per share price, the lower the dividend yield and this may indicate an over-priced stock.

Learn how to calculate dividend yield with the following examples:

Example 1:
If you purchased a stock at $8 and received a dividend of $0.12 on it, then:
Dividend Yield

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