What is the Indicated Yield?

Indicated yield is the dividend yield on a stock if the most recent dividend is annualized.

How Does the Indicated Yield Work?

The formula for indicated yield is:

Indicated Yield = (Most Recent Dividend x Number of Dividend Payments Per year) / Stock Price

For example, assume a stock's most recent quarterly dividend was $2 and the stock currently trades at $100. The indicated yield is: ($2 x 4) / $100 = 8%.

Why Does the Indicated Yield Matter?

The indicated yield is a way to forecast a stock's annual dividend yield. It is important to keep in mind that the indicated yield is only part of the equation when evaluating possible returns from a stock investment. The other part of the equation is potential stock appreciation or decline. Indicated yield is only a partial measure of return.

Ask an Expert about Indicated Yield

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Indicated Yield.

Be the first to ask a question

If you have a question about Indicated Yield, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users