I want to know on what price of a share the percentage is taken.

There are two types of value for a share of stock:

  • the market value,
  • the face or par value.

What amount I will be paid if I have shares whose market price is $25, and face value/par value is $10, when the company is giving 10% dividend?

  • 3
    Dividends are a fixed amount per share, not a percentage. – keshlam Apr 10 '16 at 3:59
  • 2
    the dividend yield is calculated as a % of the market price. – assylias Apr 10 '16 at 18:56

Dividend prices are per share, so the amount that you get for a dividend is determined by the number of shares that you own and the amount of the dividend per share. That's all.

People like to look at dividend yield because it lets them compare different investments; that's done by dividing the dividend by the value of the stock, however determined. That's the percentage that the question mentions. A dividend of $1 per share when the share price is $10 gives a 10% dividend yield. A dividend of $2 per share when the share price is $40 gives a 5% dividend yield. If you're choosing an investment, the dividend yield gives you more information than the amount of the dividend.

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