Verbull Word of the day
Finance glossary

Dividend Yield

Valuation · beginner
Definition

Annual dividends per share divided by the share price.

Dividend yield shows the cash return a stock pays relative to its price, expressed as a percentage. A high yield can mean attractive income or a falling stock price signaling risk. Investors weigh yield against the sustainability of the payout.

In a sentence

The stock's 4% dividend yield appealed to investors hunting for steady income.

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