Dividend Yield (TTM) Formula in Excel

Understanding Dividend Yield (TTM)

The Dividend Yield (TTM) formula in Excel with MarketXLS helps you quickly determine the ratio of a company’s annual dividends relative to its share price. TTM (trailing twelve months) indicates that the calculation is based on the past 12 months of dividends. This function is especially useful for:

• Evaluating income-producing stocks.
• Comparing different dividend-paying securities.
• Identifying opportunities for reinvestment or balancing portfolios.

? Pro Tip: Use the Dividend Yield (TTM) formula alongside other financial metrics (like forward dividend yield or price-to-earnings) to gain a comprehensive overview of your investment’s income potential.

Syntax and Parameters

Below is the standard syntax for the Dividend Yield (TTM) formula in Excel with MarketXLS:

=DividendYield(Symbol)

• Return Value: The function returns a numeric value representing the dividend yield (%) based on trailing twelve months’ dividends.
• Error Handling: If the symbol is invalid, data is unavailable, or the MarketXLS license check fails, the formula returns "NA".

?? Note: MarketXLS requires a valid subscription. Ensure your license is active and your internet connection is working properly; otherwise, you may get “NA” results.

Examples and Usage

Basic Example

To calculate the Dividend Yield (TTM) for Microsoft:

=DividendYield("MSFT")

This returns the latest trailing twelve-month dividend yield for Microsoft.

Using Cell References

You can also reference a cell containing the ticker symbol:

=DividendYield(A1)

If A1 contains MSFT, the formula reads it dynamically.

Indices and Advanced Tickers

• For the S&P 500 index:

=DividendYield("^SPX")

• For an option contract on Microsoft:

=DividendYield("@MSFT 110122C00020000")

• For cryptocurrency:

=DividendYield("BTCUSD:DEFAULT")

? Pro Tip: Combine this function with Excel formulas to calculate portfolio-wide dividend yields. For example, you can sum or average multiple results for different stocks in your watchlist.

Common Questions

1. Can I use dates with the DividendYield function?
   No direct date parameter is needed. The function uses the latest available TTM data. For other functions involving dates (e.g., ex-dividend dates), you can pass dates in various formats:

   • As a cell reference: =Function(A1)
   • As a direct date: =Function("2024-03-15")
   • Using Excel date functions: =Function(TEXT(A1,"yyyy-mm-dd"))

2. Why am I getting “NA” instead of a number?
   “NA” indicates an invalid ticker symbol, an inactive license, or lack of available data.

3. Is Dividend Yield (TTM) enough to assess dividend income?
   While this yield is useful, you should also assess other factors such as dividend growth, payout ratio, ex-dividend date, and company fundamentals.

4. Does Dividend Yield (TTM) update automatically?
   Yes. MarketXLS automatically fetches the latest data. However, refresh intervals depend on MarketXLS settings and your internet connection.

5. Are there performance considerations with multiple DividendYield calls?
   Each function call queries the MarketXLS API. Large batches of calls can impact Excel performance. Consider consolidating queries or using MarketXLS features like data refresh scheduling to optimize performance.

?? Note: Always verify final yield values with official company statements or reliable financial data sources.

Use the Dividend Yield (TTM) formula to quickly gauge the income potential of dividends from your investment and balance your portfolio effectively.