Dividend yield

Dividend yield is the annual dividend divided by the share price; a $2 dividend on a $50 stock is 4%. It rises when the price falls, so the highest yields are often companies about to cut. It competes with what a Treasury pays, and why the 30-year yield moved is the other side of that trade.

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In MochaLearnLearn how to read US earnings
  • P/E ratioThe P/E ratio is share price divided by the last twelve months of earnings per share; 25 means $25 for each dollar of…
  • Price-to-sales ratioThe price-to-sales ratio is market value divided by annual revenue, used for companies with no profit yet, where P/E…
  • Enterprise valueEnterprise value is market capitalization plus debt minus cash: the price of buying the whole business, lenders…
  • PEG ratioThe PEG ratio is P/E divided by expected annual earnings growth in percent, so a P/E of 30 with 30% growth gives a PEG…
  • Treasury yieldA Treasury yield is the annual return on a US government bond at today's market price; when the price falls, the yield…
  • 10-year Treasury yieldThe ten-year Treasury yield is the benchmark long rate that mortgages, company debt and stock valuations are priced…

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