Monday 20 February 2012

 DIVIDEND YIELD:      The yield a company pays out to its shareholders in the form of dividends. It is calculated by taking the amount of dividends paid per share over the course of a year and dividing by thestock's price. For example, if a stock pays out $2 in dividends over the course of a year andtrades at $40, then it has a dividend yield of 5%. Mature, well-established companies tend to have higher dividend yields, while young, growth-oriented companies tend to have lower ones, and most small growing companies don't have a dividend yield at all because they don't pay outdividends.

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