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100 FAQ's on Basic Finance

Module Units

Dividend & Dividend yield

Dividend is a share of the profits that companies distribute to its shareholders. It can be given in cash payment, stocks or any other form. However, a company is not obligated to pay a dividend.


Dividend yield is a financial ratio which measures the amount of dividend received by a shareholder from a particular stock. It is shown as a percentage of the stock’s price.


Dividend yield = Annual dividend/Current share price

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