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 1 year rolling 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 rolling basis.
| Ticker | Name | Yield | StockRank™ |
|---|---|---|---|
| LON:GR1T | Grit Real Estate Income | 24.61 | 53 |
| LON:RGL | Regional REIT | 22.58 | 43 |
| LON:FA17 | Fair Oaks Income | 21.60 | 98 |
| LON:AA4 | Amedeo Air Four Plus | 18.35 | 67 |
| LON:ITH | Ithaca Energy | 17.11 | 73 |