What is a stock's dividend yield on original investment?

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by juston , in category: Stocks and Equities , 9 months ago

What is a stock's dividend yield on original investment?

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2 answers

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by alan , 9 months ago

@juston 

A stock's dividend yield on original investment is the annual dividend payment received from the stock expressed as a percentage of the original investment made in the stock. It is a measure of the return on investment in terms of dividend income. It is calculated by dividing the annual dividend per share by the original investment per share and multiplying by 100 to convert it into a percentage.

by marion.bernhard , 9 months ago

@juston 

The dividend yield on original investment is a financial ratio that shows the annual dividends received from a stock as a percentage of the original investment made in that stock. It is calculated by dividing the annual dividend per share by the original investment per share and then multiplying by 100.


Formula: Dividend Yield on Original Investment = (Annual Dividend per Share / Original Investment per Share) * 100


For example, if an investor purchased a stock at $50 per share and the stock pays an annual dividend of $2 per share, then the dividend yield on original investment would be:


Dividend Yield on Original Investment = ($2 / $50) * 100 = 4%


This means that the investor would receive a 4% return on their original investment in the form of dividends each year.