What is Dividend Yield?
Annual dividends per share divided by share price, expressed as a percentage.
In Depth
Dividend yield tells you how much income you receive from a stock relative to its price. It's a critical metric for income-focused investors. A yield significantly above sector averages often signals a falling stock price (a 'falling knife') rather than a generous payout — always check whether the dividend is sustainable from operating cash flows.
Example
A stock priced at $50 that pays $2 in annual dividends has a 4% yield.