Dividend yield

From Financial Literacy Wiki

The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share. It's often expressed as a percentage.

Common Share Dividend Yield

There is no stipulated dividend for common stock. Instead, dividends paid to holders of common stock are set by management, usually in relation to the company's earnings. There is no guarantee that future dividends will match past dividends or even be paid at all. Due to the difficulty in accurately forecasting future dividends, the most commonly-cited figure for dividend yield is the current yield which is calculated by taking the most recent full-year dividend divided by the current share price. For example, throughout the year, you have received $2 as dividend and the current share price is $20 then your dividend yield would be 10%.