We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Indicated Yield

See: Indicated Dividend.

If a company indicates (i.e. publishes formally, legally, contractually) that it will pay, say, a 20-cent-a-share quarterly dividend this next quarter, and that stock is trading for $20 a share, then the indicated yield is 4%.

Why? Well, most dividends are paid quarterly, i.e., 4 times a year. So this $20 a share stock would then presumably be receiving 80 cents a share, annualized, and that totals an annual equity dividend yield of 4%.

That's it. No big.

Find other enlightening terms in Shmoop Finance Genius Bar(f)