{"id":180703,"date":"2022-04-11T19:38:00","date_gmt":"2022-04-11T23:38:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/dividend-yield-ttm\/"},"modified":"2025-04-14T11:12:12","modified_gmt":"2025-04-14T15:12:12","slug":"dividend-yield-ttm","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/dividend-yield-ttm\/","title":{"rendered":"Dividend Yield (TTM)"},"content":{"rendered":"<p>This value is the current percentage dividend yield calculated as the Dividends paid per share to the primary common shareholders for the trailing twelve months (TTM) divided by the current Price Close, multiplied by 100.<\/p>\n<p><strong>Dividend Yield (TTM)<\/strong>, or <strong>Dividend Yield (Trailing Twelve Months)<\/strong>, is a financial metric that measures the annual dividend income an investor can expect relative to a stock&#8217;s current market price. This ratio uses the total dividends paid over the past 12 months (i.e., the trailing twelve months or TTM), providing a snapshot of a company&#8217;s dividend payout. The formula for calculating the dividend yield is straightforward: divide the annual dividends per share by the current market price per share and multiply by 100 to express it as a percentage. For example, if a company pays $2 per share annually in dividends and its stock is priced at $40, the dividend yield (TTM) would be 5%.<\/p>\n<p>The <strong>Dividend Yield (TTM)<\/strong> is an important metric for income-focused investors, as it offers a clear picture of how much return they might receive from dividends based on the stock&#8217;s current price. It also allows for comparisons between different companies or sectors, especially when seeking investments that provide steady income streams. A higher dividend yield can be attractive to those who prioritize income generation over capital gains, but it\u2019s crucial to assess whether the dividend is sustainable, especially in industries where dividends might fluctuate with company performance or market conditions.<\/p>\n<p>However, while a high dividend yield can be enticing, it isn\u2019t always an indicator of a healthy investment. In some cases, a stock\u2019s price may fall dramatically, causing the yield to rise temporarily. This could signal potential issues with the company, such as declining earnings or financial instability. Therefore, it\u2019s important to look at the sustainability of the dividend payments, as well as the company&#8217;s overall financial health, to ensure the dividend yield is not just a short-term anomaly. Investors should consider both the yield and the company&#8217;s ability to continue paying dividends at the same level over time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This value is the current percentage dividend yield calculated as the Dividends paid per share to the primary common shareholders for the trailing twelve months divided by the current Price Close, multiplied by 100.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":true,"footnotes":""},"traders-glossary":[13265,13251],"class_list":{"0":"post-180703","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-d","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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