The ratio which would be most helpful to an investor who is investing in ordinary shares primarily for dividends rather than for appreciation in market price,is:

Question

Quizplus · Accepted Answer

The most helpful ratio for an investor who is investing in ordinary shares primarily for dividends would be the dividend yield. This ratio shows the percentage of the current market price of a share that is paid out as dividends to shareholders. A high dividend yield would indicate that the company is paying out a significant portion of its earnings as dividends and could be attractive to investors who are seeking regular income from their investments.

The Ratio Which Would Be Most Helpful to an Investor