Difference between P/E and Yield?

[LeoSayer]

Can someone explain to me the difference between yield and price/earnings ratio? Take this example of Lloyds TSB….

http://uk.moneycentral.msn.com/investor/quotes/quo...

I understand that p/e is Current price/EPS and that yield is Price/dividends but they are different and I don't understand why. I guess I’m asking what is the difference between dividends and EPS.

I want to know how to estimate the income I will receive from buying a stock.

[dcw@pr]

EPS is how much money the company itself earns per share. If the company feels it can use each £1 it earns to create more than £1 in share value it will (should, especially if you are Warren Buffet) keep hold of that money. If it feels it cannot use the money it will give it out to shareholders in the form of dividends.

HTH