Definition: What is Dividend Yield Ratio?
Dividend yield ratio is the financial ratio which measures the cash dividends amount distributed to the common shareholders relative to the market value per share.
Investors invest in the stock of money for earning of return in the form of a dividend or stock appreciation.
Some companies pay the dividend on a regular basis in order to spur the interest of investors. such type of shares is called income stock.
Some companies reinvest the money of investors in the business. these share often called growth stock.
Dividend payout ratio used by investors to analyze their return on investment in the stock.
Financial Ratio is a forum where you will learn about all ratios definitions and formulas.