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 | 16.7% | 3.56 | 57.5% |
| JAGRANJagran Prakashan Limited | 11.2% | 7.59 | 8.9% |
| ACCELYAAccelya Solutions India Limited | 8.1% | 17.56 | 36.2% |
| ALLDIGIAlldigi Tech Limited | 7.6% | 13.94 | 34.3% |
| PTCPTC India Limited | 7.5% | 7.89 | 9.8% |
| WIPROWipro Limited | 6.7% | 12.25 | 15.1% |
| DBCORPD.B.Corp Limited | 6.6% | 9.26 | 14.5% |
| COALINDIACoal India Limited | 6.4% | 7.75 | 27.7% |
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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.
