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Dividend Yield Ratio Calculator

Formula

The formula to calculate the Dividend Yield Ratio is:

$\text{DYR} = \frac{\text{ADS}}{\text{CSP}}$

Where:

$\text{DYR}$ is the Dividend Yield Ratio
$\text{ADS}$ is the Annual Dividends per Share
$\text{CSP}$ is the Current Share Price

What is Dividend Yield Ratio?

A dividend yield ratio is defined as the ratio of annual dividends per share to the current share price of a stock or security. This ratio indicates how much a company pays out in dividends each year relative to its stock price. It is a key metric for investors to assess the return on their investment in the form of dividends.

Example Calculation

Let's assume the following values:

Annual Dividends per Share (ADS) = $2.50
Current Share Price (CSP) = $50.00

Using the formula to calculate the Dividend Yield Ratio:

$\text{DYR} = \frac{2.50}{50.00} \times 100 = 5\%$

The Dividend Yield Ratio is 5%.