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Dividend Yield
Valuation & Fundamentals
The annual dividend per share divided by the share price.
It shows what percentage cash return someone buying at today's price would earn from dividends alone. The yield rises as the price falls, so an unusually high yield sometimes signals that the market expects the dividend to be cut.
Example
$2
Annual Dividend
$80
Share Price
2.5%
Dividend Yield (2 / 80)
A stock trading at $80 that pays $2 a year in dividends has a dividend yield of 2.5%.
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