Glossary · Finance

What is Dividend yield?

The ratio of the dividend paid per share for one year to the current market price of the share, in percent. It answers the investor's question "if I buy the share at today's price, how much will I earn from dividends alone". The indicator measures only dividend income: a rise or fall in the share price is not included in it. When the price falls, the yield appears to rise even if the dividend does not change, so it should be assessed together with the company's condition.

Source: Dividend yield (Wikipedia)

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