Formula
Dividend yield = annual dividend per share ÷ current price × 100 (%)
With a share price of KRW 10,000 and an annual dividend of KRW 400, the dividend yield is 4%.
Definition
Dividend yield is the dividend one share receives over a year divided by the current share price. It shows what annual percentage return the dividend alone provides on a share acquired at today's price. A dividend yield of 4% means a KRW 10,000 share pays KRW 400 in dividends a year.
A dividend is a part of the company's profit returned to shareholders in cash. Because it is a cash return received apart from the share price moving up and down, dividend yield can be compared directly with bank deposit rates or bond yields.
Jupick reads dividend yield in the dividends area (25% of the overall grade) together with the payout ratio and consecutive dividend years. The three are read together because judging the quality of a dividend means checking at once whether the company pays a lot now (yield), whether that level is not a strain (payout) and whether it is steady (consistency).
How to read it
In general, a higher dividend yield is read as more cash dividend relative to the share price. In Jupick's strengths and weaknesses summary, 4% or more is generally labeled “High dividend yield”. The Korean market average has generally moved around 2%.
Dividend yield tends to move opposite to the share price. Even with the dividend unchanged, a falling share price raises the dividend yield. An unusually high dividend yield can therefore be the result of a steep price drop, so the company's situation needs to be checked as well.
Mature sectors with stable earnings, such as banks, telecoms and utilities, tend to have high dividend yields, while companies that reinvest for growth pay small or no dividends and pursue growth in other ways.
Dividend yield across the market now
The values that fall at each point when the stocks Jupick covers are lined up by Dividend yield, smallest to largest. Positions in the line are used instead of an average because a few unusually large values can drag a single average a long way.
KoreaBased on 153 stocks
| Lowest 25% | Middle | Highest 25% |
|---|---|---|
| 0.70% | 1.64% | 3.22% |
Smallest value 0.00%, largest value 14.20%
Of the major Korean stocks, only 153 made it into this table. Left out: 47 stocks whose value is not a measured one.
OverseasBased on 199 stocks
| Lowest 25% | Middle | Highest 25% |
|---|---|---|
| 0.74% | 1.63% | 2.76% |
Smallest value 0.00%, largest value 25.00%
Stocks are rarely left out at random. Companies for which a metric does not hold, or for which the source gives no value, tend to be the ones in weaker shape, so the stocks left in the table are the ones in better condition. The middle value of such a table leans to the favorable side compared with the whole market, and the more stocks are left out, the more it leans.
How to read each range
- Lowest 25%
- The bottom quarter for dividends received relative to the share price. Companies that pay no dividend at all are included here at 0%. Companies that reinvest their profit for growth tend to gather in this band.
- Middle half
- Dividend yield is in the common range for the market. Korean and overseas markets differ in the makeup of their listed companies, so even their medians tend to differ, and only values counted within the same market are comparable.
- Highest 25%
- The top quarter for dividends received relative to the share price. Mature sectors with stable earnings tend to gather here, but the band also includes stocks whose yield rose because the price fell sharply while the dividend stayed the same. Looking at the payout ratio as well gives a sense of which case applies.
The two values at either end of the table above are the boundaries that split the stocks into three groups. What it means to belong to each group is written above.
Two stocks that fall just either side of a boundary have practically the same value. Being in different groups does not by itself make them different. The boundaries are drawn again from each day’s sample, so a company can change groups even when nothing about it has changed.
Lowest and highest describe the order of size only, not good or bad. The data is updated once a day.
Stocks with a high dividend yield now
- 1SAlphabet Inc.25.00%
- 2BGE Vernova Inc.20.00%
- 3AThe Progressive Corporation18.00%
- 4BHilton Worldwide Holdings Inc.18.00%
- 5BHYUNDAI ELEVATOR CO.,LTD14.20%
Dividend-paying stocks on Jupick's watchlist, sorted from the highest dividend yield.
Points to watch
- When a high dividend yield comes from a falling share price, it may be a sign that something has gone wrong at the company, so the number alone is not enough to judge.
- The value is calculated from past and current dividends, and future dividends can be reduced or eliminated (a dividend cut). When earnings waver, dividends waver too.
- A special dividend (a large one-time payment) mixed in can inflate the dividend yield sharply for a while.
- Dividends are taxed, so the amount actually received after tax is lower than the yield shown.