What is Dividend yield?
Dividend yield is a stock's yearly dividends per share divided by its share price, shown as a percentage.
A $100 stock paying $3 a year in dividends has a 3% yield. Because the price is in the denominator, the yield rises when the price falls.
Why it matters to you
A very high yield can be a warning sign that the market expects the dividend to be cut.
FAQ
What is Dividend yield?
Dividend yield is a stock's yearly dividends per share divided by its share price, shown as a percentage.
Is a higher dividend yield better?
Not always. An unusually high yield can mean the share price has fallen because the dividend looks unsafe.
All plain-English definitions → · Educational only, not investment advice.
