The dividend as a percentage of today's price
Dividend yield is the annual dividend per share divided by the price, as a percentage. It says what fraction of your investment comes back as dividends in a year. A falling price lifts the yield, so a high yield is not automatically good news. If the price fell because results are deteriorating, the dividend may be cut next, taking the yield down with it.
A $75 annual dividend on a $2,500 share is a yield of 3.0%.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.