Dividend yield
Dividend yield: what the company paid out in dividends that year relative to the share price at fiscal year-end.
Dividend Yield = Dividend per share (DPS) ÷ Fiscal year-end price
The annual dividend divided by the share price: what you collect each year per euro invested, without selling anything. It's the part of the return that doesn't depend on the market agreeing with you.
A strikingly high yield is usually a warning rather than an opportunity: the yield rises because the price fell, and the market is sometimes anticipating a dividend cut that hasn't been announced yet. Before trusting it, check the payout on free cash flow and net debt. And in companies that buy back stock consistently, the yield understates total shareholder return, because buybacks distribute value without going through the dividend.
Where to see it on ValuatePad
Year by year, for every company, in the tab Shareholder returns.