The Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. It is calculated as the Dividend per Share divided by the Share Price. This is measured on a TTM basis.
The dividend yield is the cash yield (comparable to the interest rate on a savings account) that we expect to receive on a share we own. For example, if I spent £100 on one share with a 5% dividend yield, then I would receive £5 in cash payments (dividends) each year I held the stock. As well as it being a way of gauging the yield on the stock, it can also be a way of identifying undervalued stocks.
A company with a dividend yield significantly above current interest rates might be considered cheap though the precise figure changes over time, though many factors come in to play here. This is measured on a TTM basis.
Ticker | Name | Yield | StockRank™ |
---|---|---|---|
LON:API | abrdn Property Income Trust | 90.18 | 49 |
LON:MRV | Maven Renovar VCT | 27.97 | 0 |
LON:VSL | VPC Specialty Lending Investments | 20.43 | 0 |
LON:FA17 | Fair Oaks Income | 19.67 | 97 |
LON:LIO | Liontrust Asset Management | 19.00 | 76 |