Evaluate the dividend yield, Strategic Management

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Q. Evaluate the Dividend yield?

Creating shareholder value 

Dividend yield

Dividend yield     = (Dividend per share / Market share price) x 100%

The dividend yield is the cash return on the share (not the whole return which is cash dividend and capital or share price growth).  Dividend yield can only be computed for listed companies as the share price is required.  Higher the share price, lower the dividend yield.


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