Dividend yield
A year of cash dividends as a percent of the share price.
Worked example · a round-number company
Dividends per share$1.00÷Share price$50.00=Dividend yield2.0%How to read it
↕Neither higher nor lower is better. Income investors want more, but a very high yield can signal a falling price or a payout at risk.
Keep in mind
- Uses cash actually paid over the period, which can lag a newly raised or cut dividend.