To evaluate the amount of dividends they receive,investors use the ratio called

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The dividend yield ratio is used to evaluate the amount of dividends an investor receives. It is calculated by dividing the annual dividends per share by the current market price per share. This ratio can give investors an idea of how much income they may receive from their investment in the form of dividends. The other ratios listed are not specifically related to evaluating dividends. The price/earnings ratio relates the stock price to earnings per share, the return on equity measures the profitability of a company's equity, and the current ratio is a liquidity ratio used to evaluate a company's ability to pay its short-term debts.

To Evaluate the Amount of Dividends They Receive,investors Use the Ratio