How is dividend yield calculated?

The calculation of dividend yield is specifically related to how much income an investor can expect to earn from their investment in a stock, expressed as a percentage of the stock price. This is achieved by taking the annual dividend payment and dividing it by the current share price of the stock.

For instance, if a company pays an annual dividend of $2 per share and the share price is $20, the dividend yield would be calculated as $2 divided by $20, resulting in a dividend yield of 10%. This metric is particularly useful for investors seeking to evaluate the income-generating potential of a stock, especially in sectors like real estate investment trusts (REITs), where dividend distributions are a key aspect of the investment's appeal.

The other choices provided do not pertain to dividend yield. The first option relates to operating income and properties, which is not relevant for dividend yield calculations. The third option discusses equity and liabilities, which refers to financial ratios rather than income generation metrics. Lastly, the fourth option combines revenue and occupancy rates, which does not address dividend payments or their relation to stock price.