Dividend Yield is a term that refers to the percentage return on investment of the shareholder. When increasing market price and not increasing dividends, the share becomes less attractive for investors and less salable.
In addition to dividend, the share may bring a capital gain, resulting from growth in share price in the market.
Dividend Yield = (Dividend per 1 share / Share market price) × 100
Use of the dividend yield in practice: The indicator is important indicator for investors to sell, hold or buy shares.
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