Yield, DPS, payout — three different numbers
Dividend per share (DPS) is the cash amount: rupees paid per share over the period. Dividend yield is that amount divided by today's price, as a percentage — it rises when the price falls, which is not always good news. Payout ratio is dividends divided by earnings: it tells you how much of the profit is being handed back, and how much room is left if profits dip. A sustainable income stock usually shows a decent yield, a payout comfortably below 100%, and earnings that cover the dividend with something to spare.
What XD means
When a stock is marked XD, it is trading ex-dividend: anyone buying it now will not receive the dividend just declared — the seller keeps it. The price normally drops by roughly the dividend amount on the XD date. Two of the top five yields above (BAFL, HMB) were XD in this snapshot, so their headline yields were not available to a new buyer at that moment.
The dividend trap
Trailing (TTM) yield looks backwards. A one-off special dividend, a final payout before earnings collapse, or a price that has already halved will all produce a spectacular-looking yield that the future will not repeat. Before buying any high yielder, check three things: is the payout ratio survivable, has the company paid consistently for several years, and is the yield high because the dividend is generous — or because the market expects trouble? Our valuation guide works through the maths.