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Figuring Out The Dividend Yield Of A Mutual Fund Is Harder Than You Think

FYI: Calculating a stock’s common dividend yield is straightforward. Calculating the yield on a dividend-stock mutual fund is not.

To calculate a stock’s yield, an investor would take a company’s annual dividend per share and then divide it by the stock price. For example, a $50 stock with a $1 annual dividend would have a 2% yield.

For individual investors to calculate the yield on an equity-income mutual fund, however, requires a lot of work and determination. And even then they might not get it right, given how many pieces to the puzzle and different yield readings there are.
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