Weighted Dividend Yield
Calculate the weighted dividend yield ratio, a valuation ratio that measures the amount of dividends distributed per share of stock relative to the stock’s price.
This dividend yield ratio takes into account the (diluted) weighted average shares and actual dividends paid as found in the cash flow statement. It provides a more accurate reflection of the dividends paid out per share, considering any changes in the number of shares.
The formula is as follows:
\[\text{Weighted Dividend Yield} = (| \text{Dividends Paid} | / \text{Weighted Average} (\text{Diluted}) \text{Shares}) / \text{Share Price}\]Also known as: blended dividend yield.
Weighted Dividend Yield in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_weighted_dividend_yield as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["TXN", "QCOM", "ADI"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_weighted_dividend_yield()
Or, after setting up the Finance Toolkit MCP, ask:
Based on the dividends paid in their cash flow statements, what dividend yields did Texas Instruments, Qualcomm and Analog Devices offer from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| ADI | 0.0157 | 0.018 | 0.0167 | 0.0169 | 0.0143 |
| QCOM | 0.0143 | 0.0257 | 0.0213 | 0.0212 | 0.0201 |
| TXN | 0.022 | 0.0281 | 0.0292 | 0.0278 | 0.0316 |
Parameters
get_weighted_dividend_yield accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
show_daily | bool | Whether to show daily values: the close of each trading day against the statement figures of the latest period that has ended on or before that day (also when it ended before the start date), so no figures are used before their period closes. Defaults to False. | True |
diluted | bool | Whether to use diluted shares in the calculation. Defaults to True. | False |
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses the trailing twelve months (4 quarters) with quarterly data and single years with annual data. | 4 |