Dividend yield
Definition
A company's annual dividends per share as a percentage of its current share price.
Formula
Dividend yield = Annual dividends per share ÷ Share price × 100
Example
A stock paying $3 a year in dividends and trading at $60 has a 5% yield.
General educational information, not personal financial advice. See our disclaimer.
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· Investing
Dividend Investing 101: Building Passive Income Through Stocks
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