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:
“How like a prodigal doth nature seem,
When thou, for all thy gold, so common art!
Thou teachest me to deem
More sacredly of every human heart,
Since each reflects in joy its scanty gleam
Of Heaven, and could some wondrous secret show,
Did we but pay the love we owe,
And with a child’s undoubting wisdom look
On all these living pages of God’s book.”
—James Russell Lowell (1819–1891)
“If a dog doesn’t put you first where are you both? In what relation? A dog needs God. It lives by your glances, your wishes. It even shares your humour. This happens about the fifth year. If it doesn’t happen you are only keeping an animal.”
—Enid Bagnold (1889–1981)