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How is the dividend yield calculated?

The dividend yield is calculated by dividing the annual dividend payment by the prevailing share price.

So, if a dividend payment is 10p (interim 3p and final of 7p for example) and the share price is 200p, then the yield would be 10 / 200 which is 0.05 or 5%.

At, we are more interested in the real yield...i.e. we like to think about the timing of the dividend.