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Equity Dividend Rate: Definition, Formula, Example

By Benjamin LockeUpdated Apr 2, 2025 at 5:56 PM

Key Points

  • Equity dividend rate calculates the yearly dividends paid per share divided by the stock price.
  • Use this rate to assess the dividend payout effectiveness relative to stock price.
  • Example: If dividends per share are $5 and stock price is $100, the dividend rate is 5%.

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