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 common curse of mankind, folly and ignorance, be thine in great revenue!”
—William Shakespeare (1564–1616)
“Whatever house you enter, first say, Peace to this house!’ And if anyone is there who shares in peace, your peace will rest on that person; but if not, it will return to you.”
—Bible: New Testament, Luke 10:5,6.