# Stock Yield Calculator

Introduction

Calculating stock yield is essential for investors to determine the profitability of their investments. A stock yield calculator simplifies this process by providing accurate results quickly.

## How to Use

To use the stock yield calculator, enter the annual dividend per share and the current market price per share. Click the “Calculate” button to obtain the yield percentage.

## Formula

The formula for calculating stock yield is:

\text{Stock Yield} = \left( \frac{\text{Annual Dividend per Share}}{\text{Market Price per Share}} \right) \times 100\% ## Example Solve Suppose you have an annual dividend per share of $2 and a market price per share of $50. Using the formula: \[ \text{Stock Yield} = \left( \frac{2}{50} \right) \times 100\% = 4\%

## FAQ’s

**Q: What is stock yield?****A: **Stock yield, also known as dividend yield, is a financial ratio that shows how much a company pays out in dividends each year relative to its share price.

**Q: Why is stock yield important?****A: **Stock yield helps investors assess the income they receive from their investments and compare it to alternative investment opportunities.

**Q: Can stock yield change over time?****A: **Yes, stock yield can change based on fluctuations in the company’s dividend payments and share price.

**Q: How frequently should I calculate stock yield?****A: **It’s advisable to calculate stock yield regularly, especially if you’re considering buying or selling shares in a company.

## Conclusion

A stock yield calculator is a valuable tool for investors to assess the profitability of their investments quickly and accurately. By understanding the formula and utilizing the calculator, investors can make informed decisions about their portfolios.