This calculation uses the annual amount of money paid to investors from the company.

Question

Quizplus · Accepted Answer

Dividend yield is the calculation of the amount of money paid to investors in dividends on a per-share basis divided by the market value of the stock. It represents the yield an investor receives for holding a stock, based on the dividends paid out. The other options either do not take into account the annual amount paid to investors (book value, earnings per share, and market value) or are a ratio of the market value to earnings per share (price-earnings ratio).

This Calculation Uses the Annual Amount of Money Paid to Investors