Dividend yield

Yearly dividends as a percent of the price.

Dividend yield tells you how much a stock or fund pays in dividends each year compared with its price.

How to read it

Divide the yearly dividend per share by the share price. A higher yield means more income per dollar invested, but a very high yield can be a warning sign: sometimes it is high because the price has fallen on bad news.

ExampleA $40 stock that pays $1.20 a year in dividends has a 3% yield. $10,000 invested would pay about $300 a year.
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