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Valuation
Dividend yield is the dividend a company paid per share over the last year, as a percentage of its current share price. It is the cash income one share produced, whatever the price did.
Dividend yield = Dividend per share (last 12 months) ÷ Share price × 100
A company paid ₹10 a share in dividends over the year and its share trades at ₹400. Its dividend yield is 10 ÷ 400 = 2.5%.
It is the part of the return that arrives whatever the share price does.
A high yield is income, but can also mean the price has fallen or that the company has run out of things to reinvest in.
| Below 1% | Little or no cash returned; profits are being reinvested. |
|---|---|
| 1% to 3% | A useful income on top of any price movement. |
| 3% to 6% | Generous. Worth checking the payout is affordable. |
| Above 6% | Unusually high — often a sign the price has fallen. |
Rough conventions for an ordinary company; sectors differ. A range is not a buy or sell level.
Dividend yield is the dividend a company paid per share over the last year, as a percentage of its current share price. It is the cash income one share produced, whatever the price did.
Dividend yield = Dividend per share (last 12 months) ÷ Share price × 100. A company paid ₹10 a share in dividends over the year and its share trades at ₹400. Its dividend yield is 10 ÷ 400 = 2.5%.
No. Dividend yield describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.