Today, we’ll cover dividend yield.
This is also known as the dividend to price ratio.
It is the ratio of the annual dividend given out by a company to the price of the stock.
This is also known as the dividend to price ratio.
It is the ratio of the annual dividend given out by a company to the price of the stock.
Dividend to price ratio = dividend / price of stock.
It is an important metric because it is also a part of the income of an investor.
Some stocks’ price may not climb much but they might give good dividends.
It is an important metric because it is also a part of the income of an investor.
Some stocks’ price may not climb much but they might give good dividends.
It is not necessary that every company gives dividends. There are several that don’t choosing instead to reinvest the amount back into the company’s business.
Looking at the dividend to price ratio of a stock tells an investor about the possibility of a dividend pay in the future.
Note, there’s no guarantee of a dividend. A stock that has been giving dividends regularly may choose to skip dividends for reasons that the company may think is necessary.
See you tomorrow!
See you tomorrow!
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