JoymistaWhat Is Dividend Yield?
Dividend yield is a company’s yearly dividend per share divided by the share price, written as a percentage.
Explained
A very high yield is not always good news: it can come from a falling price because of trouble, and the dividend may be cut later. That is why it is read alongside the company’s ability to keep paying from its earnings and cash flow.
Example
Example with made-up numbersA company pays 2 dollars per share a year and the share price is 50 dollars, so the yield is 2 ÷ 50 = 4%.
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Related terms
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Open in JoymistaEducational content, not investment advice.