The yield on a stock is its rate of return over a certain period of time. The rate of return for a stock is calculated as its dividends per share divided by its price (stock price), all multiplied by 100. In equation form, it is given as:

Stock yield = (dividends per share/ stock price) x 100

Generally, yield measures the return on an investment over a period. It indicates how much income an investor or company earns every year relative to the initial investment or capital invested (measured as market value of its investment).

In relation to stocks, yield represents the income a stockholder gets at an individual level (relating stock dividends to the stock price or value). To calculate yields on stocks, the value of dividends paid per share in a year is expressed as a percentage of the value of one share of stock.