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Looking at following stock. In the details where it says Div/yeild 0.20/3.90 As far as I understand 0.20 cents is amount paid per share. How does the yield of 3.90 gets calculated?

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dev.e.loper
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2 Answers2

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The dividend is for a quarter of the year, three months. 80 cents is 3.9% of $20.51. Presumably the Div/yield changes as the stock price changes. On Yahoo, they specify that the yield is based on a particular stated date. So it's only the exact number if the stock trades at the price on that date.

JTP - Apologise to Monica
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  • So, what is the yield if dividend is more than a dollar ex: $1.01? In this example. – dev.e.loper May 23 '11 at 19:49
  • $1.01/$20.51 = .049 or 4.9%. You are just dividing, the annualized dividend divided by the current price. By the way, Yahoo actually list s the dividend for PFE as 80cents, they annualize for you. – JTP - Apologise to Monica May 23 '11 at 20:20
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However, you have to remember that not all dividends are paid quarterly. For example one stock I recently purchased has a price of $8.03 and the Div/yield = 0.08/11.9 .

$.08 * 4 = $0.32 which is only 3.9% (But this stock pays monthly dividends).

$.08 * 12 = $0.96 which is 11.9 %.

So over the course of a year assuming the stock price and the dividends didn't change you would make 11.9%

caldweller79
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