Measures the rate of return a shareholder gets by comparing the market value of the shares with the dividend received. It is calculated by dividing the dividend per share paid to ordinary shareholders by the market price per share and multiplying by 100 to give a percentage. As with dividend per share, dividend yield should be judged in relation to other companies in the same sector of the market and previous year’s figures. It should also be compared to the interest that could be received in a year if the shares were sold and the money were invested in a bank or building society. Obviously the higher the amount the better the return shareholders are getting on their investment (at today’s prices).