Dividend yield
The annual dividend per share as a percentage of the share price.
Fundamental ratios
Live NSE examples below
What is Dividend yield?
Dividend yield is the cash return a shareholder receives from dividends at today's price. A ₹200 stock paying ₹8 a year yields 4%. In India dividends are taxed in the investor's hands at their income-tax slab rate, so the post-tax yield is lower for high-bracket investors. High-yield stocks are dominated by public sector companies and mature businesses with limited reinvestment needs.
Formula
Dividend yield = dividend per share (last 12 months) ÷ share price × 100
How to read it
- Check the payout ratio: a yield backed by profits several times over is sustainable; one exceeding profits is not.
- A yield that is high because the price has collapsed is a warning, not a bargain.
- Record date and ex-date decide who receives a declared dividend (see the dividend calendar).
Common mistakes
- Buying just before the ex-date to 'capture' a dividend. The price typically falls by about the dividend amount on the ex-date.
Live: NSE stocks matching this today
Companies yielding 3% or more 55
| Stock | Dividend Yield | P/E | ROE |
|---|---|---|---|
| VEDLVedanta Limited | 16.5% | 3.27 | 63.4% |
| JAGRANJagran Prakashan Limited | 10.7% | 7.98 | 8.9% |
| ACCELYAAccelya Solutions India Limited | 9.4% | 15.28 | 35.7% |
| PTCPTC India Limited | 8.3% | 8.00 | 9.7% |
| DBCORPD.B.Corp Limited | 7.7% | 8.51 | 13.1% |
| ALLDIGIAlldigi Tech Limited | 7.2% | 13.41 | 37.4% |
| COALINDIACoal India Limited | 6.7% | 7.26 | 26.3% |
| DLINKINDIAD-Link (India) Limited | 6.3% | 13.19 | 23.9% |
Use it on Flash Finance
Related concepts
P/E ratio (price-to-earnings)How many rupees investors pay for one rupee of annual profit.ROE (return on equity)Annual profit as a percentage of the shareholders' money in the business.Market capitalisation: large, mid and small capsCompany size by stock-market value, and SEBI's large/mid/small cap definitions.
