According to the constant growth model, the dividend yield is equal to the required return minus the dividend growth rate.

Constant Growth Model

A method to value a stock by assuming that dividends grow at a constant rate indefinitely.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earning potential from dividends for investors.

Required Return

An annual return rate set as the minimum to attract investment from persons or entities into a specific security or project.