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Dividend Yield
Annual dividend payment divided by stock price, expressed as a percentage.
Dividend yield shows the income return on a stock investment. It is calculated by dividing annual dividends per share by the current stock price. A higher yield can indicate either a generous dividend policy or a falling stock price. Investors should also consider payout ratio and dividend growth history.
Key Takeaways
- Context matters when interpreting any financial metric.
- Combine multiple data points for informed decisions.
- Continue learning to build investment knowledge.
Quick Reference
Category
income
Difficulty
Beginner
Reading Time
1 min
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Where You'll See This
This concept appears throughout stock detail pages and financial data.