Dividend Yield measures how much a company pays out in dividends each year relative to its stock price.

Dividend Yield measures how much a company pays out in dividends each year relative to its stock price.

• A. Dividend Yield
• B. P/E Ratio
• C. Ticker Symbol
• D. EPS

Answer: (A)

Dividend yield is the ratio of the annual dividends per share to the stock’s price, usually shown as a percentage. It shows how much income you receive from dividends relative to your investment cost, which is exactly what the statement describes. The other metrics measure different things: the P/E ratio compares price to earnings per share, not dividends; the ticker symbol is just the stock’s trading abbreviation; and EPS reflects profitability per share, not the payout relative to price.

Dividend yield is the ratio of the annual dividends per share to the stock’s price, usually shown as a percentage. It shows how much income you receive from dividends relative to your investment cost, which is exactly what the statement describes. The other metrics measure different things: the P/E ratio compares price to earnings per share, not dividends; the ticker symbol is just the stock’s trading abbreviation; and EPS reflects profitability per share, not the payout relative to price.