Dividend Yield


Dividend yield is the return on a financial instrument generated by the dividend offered per unit divided by the market price of a unit of the instrument. It is expressed as a percentage. 


Source: Tavaga Research

Example

For a listed company’s dividend paid to its shareholders, with a stock price of Rs 1,000 and the dividend being Rs 30, then the dividend yield is 3 percent. 

For ETFs, dividend yield is the dividend on an ETF unit divided by the market price of a unit.