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You have received a dividend and would now like to receive the Calculate dividend yield?
There are a number of things to consider and know about dividend yields. For example, you can also calculate your personal dividend yield by taking the purchase price into account.
You can easily calculate your yield with our dividend yield calculator. Let's get started and then you can read in the article how to calculate your dividend yield. Calculate personal dividend yield and what else you should look out for!
The dividend yield is a ratio that indicates, How much return you get from a share investment in the form of dividends.. It is expressed as a percentage and is an important indication for dividend investors. The calculation of the dividend yield is simple:
Dividend yield = (Annual dividend per share / Current share price) x 100
Here, the annual dividend per share is the amount that a company distributes to its shareholders per year. The current share price is the market price of the share.
In most cases, the share price at the time of the distribution is used in the calculation.
Did you know that the dividend yield can vary from investor to investor?
Depending on the entry price or purchase price the amount of your dividend yield changes. If you have purchased the share at a particularly favourable price, you will also have a higher dividend yield in percentage terms.
At the top of the dividend yield calculator, you can therefore calculate the Select personal dividend yield and then calculate.
Notable example: Warren Buffett bought Coca Cola shares for US$1.3 billion around 1980. Today he receives around 50% dividend yield on them every year. Crazy, isn't it? So far he has already received over 25 billion dollars in distributions from this investment. How did he do that? He held the investment for a long time, the share price has risen sharply since then and the dividends have also increased. So, in short, he has invested for the long term and let time work for him.
You want to calculate the formula yourself? To calculate your personal dividend yield, use the purchase price instead of the current share price:
Personal dividend yield = (Annual dividend per share / Purchase price per share) x 100
This calculation helps you to understand how much dividend yield you will get on your original investment.
By the way: Here you will find Swiss shares with high dividends at a glance!
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If you want to know how high the Dividend from a company would be if you own a certain number of shares and know the dividend yield. In this case, you can rearrange the dividend yield formula to get the Dividend to be able to calculate:
Dividend = (Dividend yield / 100) x Current share price x Number of shares
You use the dividend yield as a percentage. The current share price is the market price of the share, and the number of shares is the number of shares you hold.
The dividend yield is an important factor in the valuation of dividend stocks. It helps you to understand, how much return you can get from your investments. By calculating your personal dividend yield, you can see the ever-increasing profitability of your investments in the long term as prices rise.
A fitting anecdote to this?
Imagine you are the owner of an old vineyard. Every year you harvest delicious grapes and you want to know how much wine you can make from that harvest. The dividend yield is like the ratio between the grapes and the wine. The better the harvest, the more wine you can enjoy.
Remember that vines need time to grow and mature, just like your investments. It is important, To have patience and to the long-term results while keeping an eye on your dividend yield. 🍷💰