ACap ReCap: Financial and Tax Tips

What is Dividend Yield and How is it Calculated?

Ara Oghoorian

In this episode we talk about a dividend yield and its calculation. 

A dividend yield is a financial ratio used to gauge your performance and rate of return on a stock.

It’s calculated by taking the total dividend paid and dividing it by the price of the stock at any given point.

➝ If the price of the stock goes up and the dividend stays the same, your yield goes down.

➝ If the price of the stock goes down and the dividend stays the same, your yield goes up.

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