Lesson Plan

• Describe the purpose of the dividend yield ratio and how it differs from capital‑gain returns.
• Calculate dividends per share and dividend yield using given financial data.
• Interpret dividend‑yield results in relation to industry benchmarks and investor objectives.
• Evaluate reasons for unusually high or low yields and discuss implications for different investor types.

• Projector and screen
• Whiteboard and markers
• Calculator or financial calculator
• Printed worksheet with dividend data and practice questions
• Spreadsheet software (e.g., Excel) for quick calculations
• Sample annual reports (digital or printed)

Begin with a quick poll: “Which investors care most about regular cash returns?” Connect to the previous lesson on profit‑margin analysis and explain that today’s focus is measuring cash returns through dividend yield. State that by the end of the lesson students will be able to calculate and interpret the ratio to assess investment attractiveness.

1. Do‑now (5'): Students calculate a simple dividend yield from a provided data set on the board.
2. Mini‑lecture (10'): Define dividend yield, present the formula, and discuss its relevance.
3. Guided practice (15'): Walk through the ABC Ltd. worked example, highlighting each calculation step.
4. Independent practice (10'): Students complete two practice questions on the worksheet (numeric calculation and short‑answer).
5. Class discussion (10'): Groups share interpretations of high vs. low yields and consider investor perspectives.
6. Exit ticket (5'): Write one sentence summarising how dividend yield informs investment decisions.

Review the five‑step process from total dividends to final interpretation, confirming understanding through the exit tickets. Assign homework: each student selects a listed company, finds its latest dividend and share price, calculates the dividend yield, and writes a brief commentary comparing it to the industry average.