What is Dividend Yield?

Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It’s expressed as a percentage and calculated as:

Dividend Yield = (Annual Dividend Per Share / Stock Price) × 100

Example:

If a stock pays $2 per year in dividends and is trading at $50, the dividend yield is:

(2 / 50) × 100 = 4%

๐Ÿ“ How to Check Dividend Yield on Yahoo Finance:

  1. Go to https://finance.yahoo.com
  2. Search for the stock using its ticker symbol (e.g., AAPL for Apple).
  3. On the summary page, scroll down to the "Statistics" section or click the “Statistics” tab.
  4. Look under "Dividends & Splits" to find:
    • Forward Annual Dividend Rate
    • Forward Annual Dividend Yield (%)
    • Trailing Annual Dividend Yield (%)

Key Points:

  • High dividend yield may signal strong income potential—but could reflect risk (e.g., falling stock price).
  • Low or no yield is common for growth stocks that reinvest profits rather than pay dividends.
Disclaimer: This is general information only and not financial advice. For personal guidance, please talk to a licensed professional.
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