Glossary term
Dividend yield
Dividend yield compares annual dividend income with the price or value used in the calculation.
Plain meaning
What dividend yield means
Dividend yield is usually calculated as annual dividends divided by the share price or investment value. It expresses the dividend amount as a percentage of the value used in the formula.
Formula role
How OpenBook uses it
OpenBook calculators use dividend yield as a simple rate output or input in investment-income and valuation calculations. Where tax matters, the calculator states whether dividends are treated as eligible, non-eligible, foreign, or simplified taxable income.
Common confusion
Why yield is not total return
Dividend yield does not include price change unless the calculator adds that separately. It is also not the same as after-tax yield unless tax assumptions are explicitly included.