What Is Dividend Yield?
Definition and plain-English explanation of "Dividend Yield"
Dividend yield is the annual dividend per share divided by the current share price, expressed as a percentage. A stock paying $4 per year at a $100 price has a 4% yield. Yield rises when prices fall, so an unusually high yield can signal either a bargain or a company in trouble. It lets investors compare income across stocks.
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