Dividend Yield: formula and how to read it

Yearly dividends as a share of the price. Dividends paid per share over the last twelve months divided by the share price. Zero for companies that pay no dividend.

Stock Meadow groups it under Dividends, and shows it in tables as Div. yield.

Dividend yield = dividends paid per share over the last twelve months ÷ share price

A stock priced at $80 that paid $3.20 per share in dividends over the last year has a yield of 4%. The numbers are made up for illustration.

A higher yield means more income per dollar invested. It is zero for companies that pay no dividend.

When Stock Meadow ranks stocks, a higher figure scores better.

• A very high yield can result from a falling price and warn that the dividend is at risk, not that it is generous.
• It looks back at dividends already paid. A company can cut or raise its dividend.
• Special one-off dividends inflate the trailing figure.

How Stock Meadow handles gaps. Usually blank when the dividend isn't reported.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

Fixed-recipe models that score it: Income (dividends), Low volatility.

In Weighted ranking, Z-score composite and Balanced (no weak link), you choose the metrics and weights yourself, so you can include it in a custom score.

Read about every scoring model on the scoring models page.

• Dividend Payout Ratio: share of profit paid out; 25–65% is sustainable.
• Dividend Growth Rate (3-Year): how fast the dividend per share has grown each year.
• Dividend Cover by Free Cash Flow: how many times spare cash covers the dividend.
• Dividend per Share: dividends per share over the last year, in dollars.

Is a higher dividend yield always better?

No. A high yield can signal a price drop or a dividend at risk. Read it with the payout ratio, free-cash-flow cover and dividend growth to judge whether the payment is sustainable.

Is a higher or lower Div. yield better?

When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read Div. yield alongside other measures and compare similar companies.

Why is Div. yield blank for some stocks?

It is usually blank when the dividend isn't reported. Stock Meadow leaves the figure blank rather than guessing it.