Stock Yield Calculator

Formula

The formula to calculate the Stock Yield (SY) is:

\[ SY = \frac{DA \cdot DPY}{SP} \]

Where:

\(SY\) is the stock yield
\(DA\) is the dividend payment amount
\(DPY\) is the dividend payments made per year
\(SP\) is the initial share price

Stock Yield Definition

A stock yield is a ratio of the total dividends paid per year over the initial share price of the stock. This term is also often used interchangeably with dividend yield.

Example Calculation

Let's assume the following values:

Dividend Payment Amount (DA) = 5
Dividend Payments Made per Year (DPY) = 4
Initial Share Price (SP) = 100

Using the formula to calculate the Stock Yield (SY):

\[ SY = \frac{5 \cdot 4}{100} = 0.2 \]

The Stock Yield (SY) is 0.2 or 20%.