Dividend Yield

Cash returned per rupee invested.

A dividend is a share of profit paid out in cash. Yield expresses that payout as a percentage of the share price: the annual cash return for just holding the stock. Dividend yield = Annual dividend per share ÷ Share price × 100 Share at Rs 500, dividend Rs 20. Yield = 4%. Higher yield More cash income now, attractive for income investors. Very high yield Sometimes a warning: price fell, or the payout may be unsustainable. Low/no dividend Not always bad, the company may reinvest to grow faster. Clear income measure Good for steady cash generators Rewards you while you wait High yield can signal trouble Dividends can be cut Growth firms often pay little

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Ratios.