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Dividend Yield

200282932-001Dividend yield is one of the most important financial ratios for new and experienced investors both.It gives an idea about the expected cash flows from  investment in stocks of a particular company.It also depicts the financial strength and stability of  a company.It is calculated by dividing the annual receipts of the dividends per share to the price per share.

Dividend Yield = Annual receipts from dividends per share/Market price per share

 

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