This is the price of a share in a company divided by the dividend paid on it. Unlike the P/E ratio this is a matter or fact and cannot be fudged by accounting sleight-of-hand which can massage the “earnings” quite substantially.

So if a share is trading at £20 and last year the company paid £1 dividend per share the P/D ratio is 20. 

It is the opposite of Dividend Yield which is the dividend paid divided by the price per share. So in the above example a dividend of £1 on a share trading at £20 gives a Dividend Yield of 5%.

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