The Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. It is calculated as the Dividend per Share divided by the Share Price. This is measured on a TTM basis.
The dividend yield is the cash yield (comparable to the interest rate on a savings account) that we expect to receive on a share we own. For example, if I spent £100 on one share with a 5% dividend yield, then I would receive £5 in cash payments (dividends) each year I held the stock. As well as it being a way of gauging the yield on the stock, it can also be a way of identifying undervalued stocks.
A company with a dividend yield significantly above current interest rates might be considered cheap though the precise figure changes over time, though many factors come in to play here. This is measured on a TTM basis.
| Ticker | Name | Yield | StockRank™ |
|---|---|---|---|
| LON:ENW | Enwell Energy | 89.80 | 91 |
| LON:CMX | Catalyst Media | 31.76 | 23 |
| LON:CRS | Crystal Amber Fund | 28.25 | 32 |
| LON:MIG | Mobeus Income & Growth 2 VCT | 21.62 | 42 |
| LON:DEC | Diversified Energy | 20.76 | 49 |