What is the Dividend Yield Ratio calculation?
Simply put, the Dividend Yield Ratio calculation is calculated for a quoted company as: Dividend Yield Ratio = (Dividend Per Share) / ( Number of Shares in issue) x 100 The Dividend Yield Ratio is expressed to the investor as a percentage. In some countries investors may receive a tax credit for their dividend (please check with local professional tax advisors). The ratio can be adapted to take account of any tax credit (t) as: Dividend Yield Ratio = (Dividend Per Share/(1-t)) / ( Number of Shares in issue) x 100 Again this Dividend Yield Ratio is expressed as a percentage to the investor.