Difference between P/E and Yield?

Difference between P/E and Yield?

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Discussion

LeoSayer

Original Poster:

7,312 posts

245 months

Thursday 26th July 2007
quotequote all
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.