The Value Chronicles Episode 8 – Dividend Yield Ratio

How to calculate a dividend yield

Today and tomorrow will both be short posts to end off the section of the series on fundamental analysis. This will be about the dividend yield which uses concepts introduced previously. So to get down to business let us start with a formula.

The Dividend yield formula is,

In words, it the total dividends paid to stockholders, divided by the share price.

Using dividend yields in Crypto

It is again necessary to look at the income stream from transactions fees only and exclude any income from coins being issued in the market as a miner reward. This would simply be all future transaction income in today’s value divided by the cryptocoin price today. A similar measure is return on capital.

In some of my analysis there will be ratios that can be simplified or is sometimes completely the same as another ratio. This is because crypto is fairly unique and while it shares similarities with stocks, it is not quite the same.

The exciting times we live in!!!! Feel it, it is here!!! ✊✊✊

I leave you with an educational image on the dividend yield.

Till next time,
Tinus

** Images courtesy of SlideShare and LateX Equation Editor