How to Calculate Dividend Yield on Google Sheets

Dividend yield is an important metric for investors to consider when evaluating the potentialreturnsof a stockinvestment. In this article, we will discuss how tocalculatedividend yieldon Google Sheets, a free spreadsheet software that is widely used by investors and financial analysts.

Step 1: Gather the necessary data

To calculate dividend yield, you will need two pieces of information: the current share price of the stock and the annual dividend payment per share. You can easily find this information on financial websites such as Yahoo Finance or Google Finance.

Step 2: Create a new Google Sheet

Open a new Google Sheet and create two columns: "Stock Name" and "Dividend Yield". In the "Stock Name" column, enter the name of the stock you want to evaluate.

Step 3: Enter the current share price

In the next column, enter the current share price of the stock. You can use the "GOOGLEFINANCE" function to automatically retrieve the current share price from Google Finance.

For example, if you want to calculate the dividend yield for Apple Inc. (AAPL), enter the following formula in the second column:

=GOOGLEFINANCE("AAPL","price")

This will fetch the current share price of Apple from Google Finance and display it in the cell.

Step 4: Enter the annual dividend payment per share

In the next column, enter the annual dividend payment per share. You can find this information on financial websites or the company's investor relations page.

For example, if Apple pays an annual dividend of $3.08 per share, enter it in the third column.

Step 5: Calculate dividend yield

To calculate dividend yield, divide the annual dividend payment per share by the current share price and multiply by 100 to convert it to a percentage.

For example, if the current share price of Apple is $145.11 and the annual dividend payment per share is $3.08, the dividend yield would be:

=($3.08/$145.11)*100

This would give you a dividend yield of 2.12%.

Step 6: Repeat for other stocks

Repeat the above steps for other stocks you want to evaluate and add them to the Google Sheet.

Investment tips

When evaluating dividend yield, it's important to consider the sustainability of the dividend payments. A high dividend yield may be attractive, but if the company is not generating enough cash flow to support the dividend payments, it may not be sustainable in the long run.

It's also important to consider other factors such as the company's financial health, growth prospects, and competitive landscape before making an investment decision.

In conclusion, calculating dividend yield on Google Sheets is a simple and useful tool for investors to evaluate the potential returns of a stock investment. By following the above steps and considering other investment factors, investors can make informed investment decisions and maximize their returns.