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%
๐ How to Check Dividend Yield on Yahoo Finance:
- Go to https://finance.yahoo.com
- Search for the stock using its ticker symbol (e.g.,
AAPL
for Apple). - On the summary page, scroll down to the "Statistics" section or click the “Statistics” tab.
- 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.
Tags:
Invest _ Yahoo Finance