Dividend Yield
What is Dividend Yield?
The annual dividend per share divided by the share price.
Understanding Dividend Yield
Dividend yield shows how much cash income a stock pays relative to its price.
A very high yield can signal a falling share price or a dividend at risk of being cut.
Formula
Example
A $100 stock paying $3 a year has a 3% dividend yield.
FAQ
Is a high dividend yield always good?
No. A yield can rise because the share price fell, which may signal that the dividend is at risk of a cut.