Dividend Yield
عائد التوزيعات
Dividend yield is the annual cash dividend per share expressed as a percentage of the current share price. It measures the income a shareholder receives from distributions relative to the market price of the stock. Because the calculation uses the market price, the yield rises when the price falls and falls when the price rises, assuming the dividend is unchanged.
Example
A share priced at 40 EGP paying 3.20 EGP a year yields 8 per cent. If the price falls to 32 EGP and the payout is unchanged, the yield becomes 10 per cent — the yield rose because the price fell, not because anything improved.
Why it matters
Yield lets you compare the income from shares of very different prices on one scale, and against alternatives such as a deposit or a bill. It is the income half of a total return, with price change being the other half.
A common mistake
Chasing the highest yield on a screen. An unusually high yield is frequently a falling price pricing in a cut to the dividend, so the yield you see is one the company may not pay again.
Live example from the Egyptian market
Commercial International Bank - Egypt (CIB) S.A.E. (COMI) yields +4.31% in dividends today at EGP 138.17 a share. Details →
Data as of ; refreshes with every session or disclosure.
See it in action