Fundamentals

Dividend Yield

A stock's annual dividend as a percent of its price — the income a shareholder earns from dividends alone.

Dividend yield = annual dividends per share ÷ share price. A $2 dividend on a $50 stock yields 4%. It's the income return of holding a stock, separate from price gains, and a core metric for income and value investors. Yields rise as price falls, so an unusually high yield can signal either a bargain or a dividend at risk of being cut.

Yield is best judged with the payout ratio (the share of earnings paid out) and the dividend's growth history — a moderate, growing dividend is healthier than a sky-high one a company can't sustain. Most fast-growing momentum names pay little or no dividend.

On StockSetups

Dividend yield is a screener field on StockSetups, available on the dossier for traders who weigh income alongside the technical setup.

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