The formula to calculate the Dividend Yield Ratio is:
\[ \text{DYR} = \frac{\text{ADS}}{\text{CSP}} \]
Where:
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.
Let's assume the following values:
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%.