Dividend Yield

Dividend yield tells an investor what cash return the dividend alone provides on the current price of a share, ignoring capital gains. It is calculated as dividend per share divided by market price per share.

The yield rises when the price falls or the dividend rises. A very high yield can be attractive but may also signal that the market expects the dividend to be cut. Investors compare the yield with fixed deposit rates and government bond yields to judge relative attractiveness.

In Nepal, companies often declare both cash dividends and bonus shares. Strictly, dividend yield refers to the cash dividend; bonus shares increase the number of shares rather than paying cash, so analysts may report cash yield and total dividend separately. Cash dividends on listed shares are subject to withholding tax at source.

Dividend yield is linked to the payout ratio and P/E: Dividend yield = Payout ratio / P/E.

लाभांश प्रतिफलले पुँजीगत लाभ नगनी हालको मूल्यमा लाभांशबाट मात्र कति नगद प्रतिफल मिल्छ भन्ने देखाउँछ। प्रतिशेयर लाभांश / प्रतिशेयर बजार मूल्य।

मूल्य घट्दा वा लाभांश बढ्दा प्रतिफल बढ्छ। अत्यधिक उच्च प्रतिफलले लाभांश घट्ने अपेक्षा पनि सङ्केत गर्न सक्छ। नेपालमा नगद लाभांश र बोनस शेयर दुवै दिइने भएकाले कडाइका साथ नगद लाभांशलाई मात्र प्रतिफल मानिन्छ। लाभांश प्रतिफल = भुक्तानी अनुपात / P/E।