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Results for “Dividend Yield”

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Corporate Actions, Dividends & Governance

Dividend Yield

The annual dividend per share expressed as a percentage of the share price.

Dividend Yield = Annual Dividend per Share / Market Price per Share x 100 % Corporate Actions, Dividends & Governance

Dividend Trap

A share whose high dividend yield reflects a falling price and an unsustainable payout rather than attractive income.

Test: the yield is elevated because the price fell, and the dividend exceeds free cash flow or is funded by borrowing qualitative Risk & Portfolio Management

Benchmark

The index or standard against which a portfolio's performance is measured.

Excess Return = Portfolio Return - Benchmark Return over the same period % Corporate Actions, Dividends & Governance

Dividend per Share

The total dividend declared for a period divided by the number of shares outstanding.

Dividend per Share = Total Dividend Declared / Number of Shares Outstanding ₹ Fundamental Analysis & Valuation

Earnings Yield

Earnings per share expressed as a percentage of the share price — the inverse of the price-to-earnings ratio.

Earnings Yield = Earnings per Share / Market Price per Share x 100 = 1 / P/E x 100 % Risk & Portfolio Management

Equity Risk Premium

The additional return investors require for holding equities rather than the risk-free asset.

Equity Risk Premium = Expected Market Return - Risk-Free Rate % Corporate Actions, Dividends & Governance

Special Dividend

A one-off dividend, usually much larger than the regular payout, arising from an unusual event.

Test: the dividend is explicitly designated as non-recurring and is not part of the stated dividend policy ₹ Funds, ETFs & Index Investing

Total Return Index

An index variant that assumes dividends are reinvested, so it measures the full return from holding the constituents.

Total Return = Price Return + Dividend Yield, compounded over the period index points Fundamental Analysis & Valuation

Value Trap

A share that looks cheap on backward-looking multiples but is cheap because its business is deteriorating.

Test: the low multiple is explained by declining earnings power rather than by temporary pessimism, so the multiple stays low as earnings fall qualitative Market Basics & Instruments

Dividend Stock

A share of a company that distributes a substantial and reasonably reliable portion of its profits as dividends.

Test: a sustained payout ratio and dividend yield materially above the market average, supported by free cash flow qualitative