On the flip side, if a stock trading at $100 is paying 3% yield annual dividend, and then suddenly jumps in price to $200, the dividend yield now crashes to 1.5%, which seems pretty measiky until you realize you're still receiving that fixed $3 annually per share...it's just a smaller percentage of the share price.
https://www.quora.com/How-does-dividend-yield-work
Essentially, for every share of a dividend stock that you own, you are paid a portion of the company’s earnings. You get paid simply for owning the stock! For example, let’s say Company X pays an annualized dividend of 20 cents per share. Most companies pay dividends quarterly (four times a year), meaning at the end of every business quarter, the company will send a check for 1/4 of 20 cents (or 5 cents) for each share you own.
http://www.dividend.com/dividend-investing-101/what-are-dividend-stocks/
Dividend yield:Total annual dividend per share / current share price. For example:suppose a company pays annual dividend of INR 1.50 and current share price is INR 25,then dividend yield is (1.5/25):6%.
https://www.quora.com/How-does-dividend-yield-work
To get a company’s dividend yield using the Reuters Web site, follow these steps: 1  Go to Reuters’ stocks main page. 2  Enter a ticker symbol in the View Overview For blank. 3  Select the Financials radio button to the right of the red search button, and then click the red search button.
http://www.dummies.com/personal-finance/investing/online-investing/how-dividends-work/
Dividends must be declared (i.e., approved) by a company’s Board of Directors each time they are paid. There are three important dates to remember regarding dividends. Declaration date: The declaration date is the day the Board of Directors announces their intention to pay a dividend.
https://www.thebalance.com/dividend-investing-introduction-357452
Dividends are given out of net profits of a company. Lets say a company has $1000 as profit and declares $400 as dividends then 40% is the payout ratio. Dividend yields are always calculated as annual dividend / current market price of share.
https://www.quora.com/How-does-dividend-yield-work
Cash Dividends. Regular cash dividends are those paid out of a company’s profits to the owners of the business (i.e., the shareholders). A company that has preferred stock issued must make the dividend payment on those shares before a single penny can be paid out to the common stockholders. Special One-Time Dividends.
http://www.dividend.com/dividend-investing-101/what-are-dividend-stocks/
In addition to regular dividends, there are times a company may pay a special one-time dividend. These are rare and can occur for a variety of reasons such as a major litigation win, the sale of a business or liquidation of an investment. They can take the form of cash, stock or property dividends.
https://www.thebalance.com/dividend-investing-introduction-357452
Dividends are paid based on how many shares you own. If a company declares a $1 per share dividend and you own 100 shares, you will receive $100. To help compare the sizes of dividends, investors generally talk about the dividend yield. You can calculate a stock’s dividend yield by dividing the annual dividend by the stock’s price.
http://www.dummies.com/personal-finance/investing/online-investing/how-dividends-work/
The percentage of net income that is paid out in the form of a dividend is known as the dividend payout ratio. This ratio is important in projecting the growth of company because its inverse, the retention ratio (the amount not paid out to shareholders in the form of dividends), can help project a company’s growth.
https://www.thebalance.com/dividend-investing-introduction-357452
how do stock dividends work
For every share of a dividend stock that you own, you are paid a portion of the company’s earnings. You get paid simply for owning the stock.