Dividend yield is the financial equation that calculates the cash dividend quantity paid out to investors compared to the market value per share. It is calculated by dividing by market price per share the dividend and multiplying by 100 the product. In the form of dividends, a company with a high dividend yield charges a significant share of its earnings. A company's dividend yield is always contrasted with the industry average that the firm belongs to. The dividend yield is the market price per share ratio of past paid dividends. The payout includes full and partial dividends. A stock may pay good dividends every year, but the stock price may be high. The dividend yield comes into play to make sure this stable dividend's asking price isn't too much.