The annual dividend yield is computed by dividing the annual dividend to be paid in the coming year by the .

Current stock price

Explanation:

Annual dividend yield is simply the ratio of annual dividend per share and share price at current period.

A (4-6%) dividend yield can be regarded as a good yield if it's recorded in a business, though it depends on interest rate and some other factors.For instance, a company with $3.50 annual dividend as well as stock trade of $30, will have dividend yield of( $2.0÷$40)= 5% dividend yield.

It should be noted that The annual dividend yield is computed by dividing the annual dividend to be paid in the coming year by the current stock price