Dividend Yield
Last updated 9 months ago
Dividend yield shows the annual return an investor earns from dividends relative to the current share price. It is expressed as a percentage and helps investors evaluate how much income they can expect to receive from holding a stock, excluding any gains or losses from changes in the stock price.
A higher dividend yield may indicate a generous payout, but it can also signal potential risk if itβs unusually high. A lower yield could suggest the company reinvests more into growth instead of paying out profits.
Formula:
Dividend yield = Annual dividends per share/Price per share