What is the Difference Between Dividend and Dividend Yield?
🆚 Go to Comparative Table 🆚The difference between dividend and dividend yield lies in the way they represent the income generated from owning shares of a company.
- Dividend: The dividend, also known as the dividend rate, is the absolute amount of dividends paid per share, typically expressed as a dollar figure. It represents the total expected income from a specific investment, such as a stock or a mutual fund.
- Dividend Yield: The dividend yield is a percentage that represents the ratio of a company's annual dividend compared to its current share price. It helps investors assess the income-generating potential of a company and provides more information on the rate of return. A higher dividend yield suggests higher income from investment in terms of dividend earnings.
In summary, the dividend rate indicates the total expected income from a specific investment, while the dividend yield provides more information on the rate of return and allows investors to compare the dividends of two or more stocks on a percentage basis. Both metrics are important for equities investors to evaluate their investments.
On this pageWhat is the Difference Between Dividend and Dividend Yield? Comparative Table: Dividend vs Dividend Yield
Comparative Table: Dividend vs Dividend Yield
Here is a table comparing the differences between dividend and dividend yield:
Feature | Dividend | Dividend Yield |
---|---|---|
Definition | The total amount of money a company pays out to its shareholders as dividends on a per-share basis. | The percentage of a company's current stock price that is paid out as dividends over the course |
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