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• What are dividends?
• Dividend yields
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• Information and resources on shares

Dividend yields

The dividend yield measures the income return that you'll receive on your investment. While the full return on your investment will also include movements in the share price, the dividend yield is useful to understand the actual cash that you'll receive as a percentage of your outlay. In addition, it's a useful ratio to compare against other potential share investments.

The dividend yield is calculated as

Dividend per Share
Share Price

It's important to understand that the amount of dividend paid in the past is no guarantee of the level of future payments.

Note that it's important to use the value of the dividend per share after the imputation credit (if applicable) has been calculated.