Dados B3 › Glossary

Glossary

Dividend yield (DY)

How much the stock paid in cash distributions, as a percentage of price.

What it is

How much the stock paid in cash distributions, as a percentage of price. Shown on the stocks pages.

How Dados B3 calculates it

sum of distributions per share (dividends and interest on capital, gross) with record date in the last 365 days ÷ latest closing price. Return of capital is left out. It is a historical yield: what was paid, not a promise of what will be paid.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: A share at R$ 20 that paid R$ 1.40 in distributions over the last 12 months: DY = 1.40 ÷ 20 = 7%.

What to watch for when reading it

• A very high DY can come from a price fall or a one-off distribution that will not repeat.
• The value is gross: interest on capital carries 15% withholding tax, not deducted here.
• Compare with the payout to see whether the payment fits within profit.

See also

• 12-month DY
• Payout ratio
• Return of capital

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Educational content to understand what each number means. It is not a recommendation to buy or sell.