Dividend yield is one of the ratio which is used to select dividend paying stock. What is dividend yield in simple terms it is% amount earn on the amount invested in a share.

If you want to know how to buy dividend paying stock see my blog.

Eg. If price of the stock is Rs. 100 and it has paid dividend of Rs. 10 for the year.

Then dividend yield is 10%

Dividend yield is

=dividend per share/market price per share x100

means dividend per share divided by market price per share into 100=

another example

Stock price Rs. 300 dividend per share paid is Rs. 50

Then yield is

16.67%

Some of the stock with high dividend yield are Coal India, Hindustan Zinc, REC.

Out of these I have REC in my portfolio.

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