Indicated Yield

See: Indicated Dividend.

If a company indicates (i.e. publishes formally, legally, contractually) that it will pay, say, a 20-cent-a-share quarterly dividend this next quarter, and that stock is trading for $20 a share, then the indicated yield is 4%.

Why? Well, most dividends are paid quarterly, i.e., 4 times a year. So this $20 a share stock would then presumably be receiving 80 cents a share, annualized, and that totals an annual equity dividend yield of 4%.

That's it. No big.

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