Common Shares
Common shares will often pay out a portion of the earnings as dividends. The dividend yield is the total dollars (Yen, etc.) paid in a year divided by the spot price of the shares. Most web sites and reports are updated with the expected future year's payments, not the past year's.
The price/earnings ratio quoted for common shares is the reciprocal of what is called the earnings yield. EarningsPerShare / SharePrice.
Read more about this topic: Yield (finance)
Famous quotes containing the words common and/or shares:
“The same principles which at first view lead to skepticism, pursued to a certain point, bring men back to common sense.”
—George Berkeley (1685–1753)
“Anyone who knows a strange fact shares in its singularity.”
—Jean Genet (1910–1986)