Dividend Yield

Dividend yield is the cash income a buyer would receive over a year at today's price, if the dividend stays at the rate used in the numerator. Trailing yield uses dividends already declared. Forward yield uses the expected rate.

It is both a valuation ratio and a dividend metric. A higher yield means more income per rupee of price, or a price that has fallen.

Compare the yield with the company's history, with peers, and with the payout ratio. A yield that jumped because the price collapsed is not the same as a yield the board chose to raise.

A very high yield is often the market's way of saying the dividend may be cut. Check cash flow cover, debt covenants, and whether the latest dividend was a one-time special.