Financial metrics2 min read
Dividend yieldGerman: Dividendenrendite
Dividend yield divides the annual dividend per share by the share price.
In plain language
The dividend used can be historical or expected. A rising price lowers the metric if the dividend is unchanged. A falling price raises it mathematically, even if the company is in financial trouble.
Let’s make it concrete
A €2 annual dividend and €50 share price imply a 4% dividend yield. Price losses are not included.
Simplified example for illustration.Worth understanding
A high yield may result from a falling price. Future dividends can be reduced or cancelled.
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Financial education for orientation. No individual investment, tax or legal advice.
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