Glossary
Dividend yield: meaning, example and why it matters
The dividends a company paid per share over the last year divided by its current share price, as a percentage. It changes whenever the price changes, and dividends can be cut.
Worked example
A share priced at ₹200 that paid ₹6 in dividends over the last year has a yield of 6 ÷ 200 = 3%. If the price doubles to ₹400 with the same dividend, the yield halves to 1.5%.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Yield relates the dividend to the price you would pay today, so it changes whenever the price changes.
Related terms
See it in practice
Frequently asked questions
Does a high dividend yield mean a safe dividend?
No. A high yield can come from a fallen price or a one-off payout, and dividends can be cut.
Is this page investment advice?
No. Dividend yield is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.