<p>As of the market close on 2/14/2020, Apple's stock price was \$324.95 per share. The forward looking dividend (based on announced dividend policy over the next year) is \$3.08 per share. The <a href="https://www.investopedia.com/terms/f/forward-dividend-yield.asp" rel="nofollow noreferrer">forward looking dividend yield</a> is therefore <span class="math-container">$\frac{3.08}{324.95} = 0.00948$</span> or 0.95%. This means that for every share, the firm is planning to pay out \$3.08 over the next year, so the effective yield is that payout over the current stock price. Essentially, every \$100 invested in Apple will throw off 95 cents of cash over the next year. </p>

<p><a href="https://i.sstatic.net/mKv3n.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/mKv3n.png" alt="enter image description here"></a>
Source: <a href="https://finance.yahoo.com/quote/AAPL?p=AAPL&amp;.tsrc=fin-srch" rel="nofollow noreferrer">Yahoo Finance</a></p>

CC BY-SA 4.0
2020-02-18T15:29:03.290Z
2020-02-18T15:29:03.290Z
BKay
<p>Here's an Apple's dividend: <a href="https://i.sstatic.net/yMN5W.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/yMN5W.png" alt=""></a>  </p>

<p>What does this 0.95% mean? Is it 0.95% of share capital? If not, what does it mean? </p>

CC BY-SA 4.0
2020-02-19T10:02:51.717Z
https://www.investopedia.com/terms/d/dividendpayoutratio.asp
Art
<finance><stock-market>
What does it mean for a firm to have a 0.95% dividend?
iambartosh
# What does it mean for a firm to have a 0.95% dividend?

(Asked by: username_0 on 2020-02-18)

Here's an Apple's dividend: [![](https://i.sstatic.net/yMN5W.png)](https://i.sstatic.net/yMN5W.png)

What does this 0.95% mean? Is it 0.95% of share capital? If not, what does it mean?

**Tags:** finance, stock-market

> **Comments:**
> **username_1**: https://www.investopedia.com/terms/d/dividendpayoutratio.asp  

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## 1 answers

### Answer by username_2 on 2020-02-18. Score: 3

As of the market close on 2/14/2020, Apple's stock price was \$324.95 per share. The forward looking dividend (based on announced dividend policy over the next year) is \$3.08 per share. The [forward looking dividend yield](https://www.investopedia.com/terms/f/forward-dividend-yield.asp) is therefore $\frac{3.08}{324.95} = 0.00948$ or 0.95%. This means that for every share, the firm is planning to pay out \$3.08 over the next year, so the effective yield is that payout over the current stock price. Essentially, every \$100 invested in Apple will throw off 95 cents of cash over the next year.

[![enter image description here](https://i.sstatic.net/mKv3n.png)](https://i.sstatic.net/mKv3n.png)
Source: [Yahoo Finance](https://finance.yahoo.com/quote/AAPL?p=AAPL&.tsrc=fin-srch)


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