A share priced at Rs 100 that paid Rs 8 in dividends for its last fiscal year yields 8%. The yield rises when the price falls and falls when the price rises, even if the dividend stays the same.
A very high yield can mean a generous, steady payer, or a dividend the market doubts will be repeated. Check the payout ratio and the dividend history before relying on it.
Smart Money uses the total cash dividend declared for the latest fiscal year (interim and final) and the latest close.
Formula
Dividend yield = dividend per share ÷ share price × 100
Dividend yield on the Pakistan Stock Exchange
Across 495 listed companies with the figure, the median is 4.7%.