Dividend Yield
✓ Last verified 14 Sep 2026
The short version
Dividend yield is the annual dividend a stock pays, expressed as a percentage of its current price - a way to compare income generated by different stocks regardless of their share price.
Dividend yield = annual dividend per share ÷ current share price. It lets you compare the income generated by a ₹50 stock and a ₹5,000 stock on equal footing, regardless of their very different price levels. A word of caution: an unusually high dividend yield can sometimes signal that a stock's price has fallen sharply (mechanically inflating the yield percentage) due to underlying business trouble, rather than the company simply being generous - a high yield is worth investigating, not automatically celebrating.
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