What is Yield and how is it calculated

simple_simon_5

Hi. I'm really new to this so this probably a noobish question but I'm not understanding how the Yield is calculated when looking at stocks on sites like yahoo finance. Currently I'm looking at http://uk.finance.yahoo.com/q?s=VOD.L

Any info how it's calculated and it's importance is greatly welcomed

withnell

Dividend yield = Dividend amount / share price

Richard_DandR

Vodafone dividend history here
http://www.vodafone.com/start/investor_relations/shareholder_services/ordinary_shareholder/calculator.html

The last two dividends paid are the final of 5.02p and the interim of 2.57p which total 7.59p.

Divide 7.59p by the share price - say 116.15p - and you get 6.53%.

So if you buy £1,000 of Vodafone shares at 116.15p you would get an income of £65.30, based on historic payments. What we don't know is what they might pay in the future.

simple_simon_5

Ah Thanks Richard, that makes perfect sense. Though why does yahoo finance have 6.31% for the Yield

gozomark

because it depends on the share price used