Dividend yield = (dividend per share / market price per share) x 100dividend payout ratio = (dividend per share / earnings per share) x 100dividend yield indicates how much of an income return you receive for the money youspend on your investment. for those seeking income, higher dividend yields would bemore attractive, provided the company is financially stable.dividend payout ratio indicates how much of the companys profits are being paid outto shareholders. a really high number indicates a substantial portion of earnings havebeen paid out. the most likely cause for very high number is that earnings areextremely low but the company decided to maintain a regular dividend payment.further investigation of the companys financial health would be required.
Answer Anonymously
Copy Link
