Annual dividend per share divided by the current share price, expressed as a percentage. A high yield may indicate value but could also signal a falling stock price.
← Back to Glossary
D
Dividend Yield
Fundamental AnalysisCorporate Actions
Related terms
Bonus Issue
Free additional shares given by a company to existing shareholders in a fixed ratio (e.g., 1:1 means one free share for every share held). The stock price adjusts proportionally.
Book Value
The net asset value of a company, calculated as total assets minus intangible assets and liabilities, divided by number of outstanding shares.
Buyback
When a company repurchases its own shares from the market, reducing the number of outstanding shares. Often signals that the company believes its stock is undervalued.
CAGR
Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how an investment would have grown if it grew at a steady rate.
DRHP
Draft Red Herring Prospectus. A preliminary document filed with SEBI by a company planning an IPO, containing financial details and information about the offering.
DVR Shares
Differential Voting Rights shares. Shares that have fewer voting rights compared to ordinary shares but may offer higher dividends. Tata Motors DVR is a well-known example in India.