The dividend yield is the annual cash dividend per share of common stock divided by the market price of a share of the common stock.

Usually, fast growing corporations have a low dividend yield. Public utilities generally have high dividend yields.

Learn more about Financial Ratios.

Take our Financial Ratios Exam.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

Learn more about AccountingCoach Pro