Dividend Yield Formula - Python Code

Dividend Yield Formula

\text{Dividend Yield} = \frac{\text{Annual Dividend Payment}}{\text{Stock Price}} \times 100%

where:
Annual Dividend Payment is the total amount of dividends paid out over the course of a year
Stock Price is the current market price of the stock

Python Code

dividend_yield.py

def dividend_yield(annual_dividend, stock_price):
    yield_pct = (annual_dividend / stock_price) * 100
    return yield_pct


annual_dividend = 4.00
stock_price = 110.00

yield_pct = dividend_yield(annual_dividend, stock_price)

print("Dividend yield: {:.2f}%".format(yield_pct))

# Output: Dividend yield: 3.64%