The dividend rate refers to the total amount of dividends a company pays per share over the course of a year. It represents the expected return an investor will receive from owning a dividend-paying stock. The dividend rate is usually expressed as a cash value per share on an annual basis.
For more information on dividends, how to calculate the rate, the different market factors that influence rates, and more, read the blog from BeatMarket - an IT platform and mobile app for investment portfolio analysis. Dividend Rate vs.
Dividend Yield The dividend rate is an absolute value that shows how much cash dividends a company pays per share each year.
The dividend yield is a percentage that shows how much income an investor receives from dividends relative to the stock price: Shows the financial strength of a company and its ability to return profits to shareholders. Used by income-oriented investors to select dividend-paying stocks for passive income. Investors should also consider factors such as dividend growth, payout ratio, and overall financial health before relying solely on the dividend rate when making investment decisions.
