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In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows: Investopedia explains Dividend Yield
Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable dividend yields. Return On Equity - ROE Investopedia explains Return On Equity - ROE
The ROE is useful for comparing the profitability of a company to that of other firms in the same industry...
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