Abstract:

Since dividend yield is an important indicator in terms of bringing regular and continuous income to stock investors in the long term, investors in stock markets give priority to companies that distribute dividends in their portfolios. In this study, it is aimed to determine the relationship between dividend yield and profitability ratios of companies traded in Borsa Istanbul Dividend 25 index in the period of 2020-2022. In determining the profitability rankings of the companies, return on assets, operating profit margin, EBITDA margin, net profit margin, return on equity, ROIC and ROCE ratio are included in the study as evaluation criteria. Evaluation criteria were weighted with the CRITIC method, which is an objective weighting method. By using the Gray Relational Analysis Method, the gray relationship degrees were determined according to the profitability ratios of the companies and ranked from the largest to the smallest. The most important criterion was the return on equity in 2020 and 2022, and the ROCE ratio in 2021. In the 2020-2022 period, the criterion with the lowest importance was determined as the return on assets ratio. The companies with the highest profitability according to gray relational degrees were EGEEN, GWIND and TTRAK in 2020, EGEEN, TTRAK and GWIND in 2021, and GWIND, TTRAK and TOASO in 2022. It was concluded that there was a positive relationship between the dividend yield of the companies traded in the BIST Dividend 25 index and the profitability ranking measured by GIA in 2020 and 2022, and a negative relationship in 2021, but this relationship was not statistically significant.

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