Dividend yield is the annual dividend per share divided by the market price per share. The dividends per share remained the same from Year 1 to Year 2 while the market price for the stock increased. When the denominator of a ratio increases while the numerator remains the same, the ratio does not increase, it decreases.
Dividend yield is the annual dividend per share divided by the market price per share. At the end of Year 1, the dividend yield was $1 / $50, or 2%. At the end of Year 2, it was $1 / $60, or 1.67%, a decline.
The return to investors consists of not only the dividend but also of the gain in market value of the stock. Therefore, the dividend yield alone is not indicative one way or the other of whether the company's return to investors has been positive or negative.
Dividend yield is the annual dividend per share divided by the market price per share. The dividends per share remained the same from Year 1 to Year 2 while the market price for the stock increased. Therefore, it would not be possible for the dividend yield to have remained the same.
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